Interstate Bakeries Corporation (fka IBCIQ)

[Phisherman]

It's a Wonder: IBC emerges from bankruptcy [The Kansas City Star, Mo.]
02/03 07:41 PM
Feb. 3--After more than 4 1/2 years, the maker of Wonder Bread, Hostess Twinkies and a host of other iconic brands, has shed bankruptcy protection, preserving 22,000 jobs.
Interstate Bakeries Corp., announced that a $600 million financing plan has been finalized, giving control of the company to a New York investment fund, but leaving its management in place.
"Today marks a new beginning for Interstate Bakeries," Chief Executive Officer Craig Jung said in a statement. "We are now a stronger and more competitive company. With this period behind us, we can now unleash and empower 22,000 IBC employees to better serve our consumers and customers, revitalize our core brands, and launch product innovation that will profitably grow our business."
New York investment firm Ripplewood Holdings has majority control of the Interstate with an investment of $44.2 million in cash and $85.8 million in convertible debt. The other nearly 50 percent will be held by lenders who are helping finance operations once the company emerges from bankruptcy.
Interstate's 19,000 union employees were promised a future equity stake in the company if it grows, in exchange for concessions in pay, benefits and work rules. The Teamsters represent about 8,500 of Interstate's 22,000 workers. The Bakery, Confectionery, Tobacco Workers and Grain Millers Union represents about 8,200 Interstate workers and a host of other unions represent the rest.
Interstate filed for bankruptcy in September 2004.
| Eric Palmer, [e-mail]
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