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Interstate Bakeries seeks court approval of investment agreement
By Caroline Salls
Pittsburgh, Sept. 30 - Interstate Bakeries Corp. requested court approval of the investment agreement with IBC Investors I, LLC, according to a Monday filing with the U.S. Bankruptcy Court for the Western District of Missouri.
As previously reported, the company received the plan funding commitments from a group of lenders holding about 53% of Interstate's pre-bankruptcy secured debt that forms the basis for Interstate to emerge as a stand-alone company.
The lenders include an affiliate of Ripplewood Holdings LLC and Silver Point Finance, LLC, Monarch Alternative Capital LP and McDonnell Investment Management LLC.
According to Monday's motion, IBC Investors will invest $44.2 million in cash in the reorganized company in exchange for 17% of the common stock of the reorganized company and will purchase $85.8 million in new fourth-lien convertible secured notes, which will be convertible into 33% of the new common stock.
The investors will also receive series A warrants with a strike price of $12.50 and representing 15% of the new common stock.
In addition, Interstate said General Electric Capital Corp. has agreed to structure, arrange and syndicate a $125 million working capital senior secured revolving credit exit facility and Silver Point Finance and Monarch Master Funding have agreed to structure, arrange and syndicate a $339 million term loan credit facility.
The term loan lenders will receive 17% of new common stock, as well as series B warrants with a strike price of $12.50 and series C warrants with a strike price of $10.00.
A hearing is scheduled for Oct. 22.
Interstate, a Kansas City, Mo., bakery operator, filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.
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