IBC gets approval from judge
Jennifer Mann, The Kansas City Star
Wednesday, January 30, 2008
Interstate Bakeries Corp., under court protection from creditors for 3½ years, received permission Tuesday to present a plan to creditors that could lead to its emergence from bankruptcy.
After resolving a handful of objections, U.S. Bankruptcy Judge Jerry Venters said Interstate could send its disclosure statement to creditors and allow them to vote for or against the company’s reorganization plan.
“Let’s get this out there and let people vote,” Venters said.
The plan calls for Interstate’s lenders to receive a full recovery of the $450 million the group is owned in the form of new stock. Other creditors, according to the plan, are slated to receive from 30 cents on the dollar, also in newly issued stock, to nothing for the current shareholders.
Interstate’s shares closed Tuesday at 2 cents, down 2 cents.
The company projected that if its reorganization plan is accepted, it will have losses this year and in 2009, be profitable by 2010, and be earning about $50 million by fiscal 2013.
The company expects to mail the plan and ballots by Monday. The deadline for returning the ballots is March 3, and a hearing to confirm the plan is scheduled for March 12.
But one issue looming over the plan is that Interstate has been unable to reach agreement with the International Brotherhood of Teamsters, which represents about 9,000 of Interstate’s 25,000 workers.
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gold66801 (anonymous) says...
you teamsters are all idoits
February 5, 2008 at 5:46 p.m. ( permalink | suggest removal )
equalrights (anonymous) says...
You can't spell idiot which means you probably shouldn't call people that.
I mean..I'm just saying...
February 5, 2008 at 6:36 p.m. ( permalink | suggest removal )