Interstate Bakeries sets Jan. 3 deadline for Yucaipa, Teamsters to file plan of reorganization

By Caroline Salls

Pittsburgh, Dec. 20 - Interstate Bakeries Corp. has set a Jan. 3 deadline for the Yucaipa Cos. LLC and the International Brotherhood of Teamsters to file a plan of reorganization and related disclosure statement, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

According to the filing, because the Teamsters have agreed to negotiate exclusively with Yucaipa on the terms of a proposed alternate to Interstate's Silver Point-funded plan of reorganization, Interstate and other parties have been unable to adhere to deadlines set under court-approved alternative proposal procedures.

As previously reported, alternative proposals are due by Jan. 15.

If multiple bids are received, an auction will be held on Jan. 22, and the hearing on approval of the highest offer is scheduled for Jan. 29.

The company said it is imperative that the Teamsters and Yucaipa file a plan that details their proposed plan alternative by Jan. 3 to allow the company, its plan investors and other interested parties to meet the proposal deadlines.

Interstate said on Dec. 14 that other parties have expressed interest in entering the bidding process. The company said some interested bidders would make competing plan proposals, while others have expressed interest in buying some of the company's assets.

If Yucaipa and/or the Teamsters do not file a plan and disclosure statement by Jan. 3 that includes at least minimum details on their proposal, Interstate said the court should bar them from filing any plan or disclosure statement in the future.

On Dec. 14, Interstate acknowledged that it had received a reorganization proposal from Yucaipa and the Teamsters, but the company said it did not qualify as an alternate proposal under the submission procedures because it did not include a business plan; did not provide any details on how a Yucaipa business plan would be financed; and did not include any financing commitments.

In addition, the company said the proposal did not describe the terms and concessions the Teamsters would provide to the reorganized company, or any indication that any agreement had been reached with any of the other unions that represent Interstate's employees.

The Kansas City, Mo., bakery operator filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.