US: Bankruptcy court gives IBC green light
Interstate Bakeries (IBC) has announced that the Kansas City bankruptcy court, has confirmed its amended joint plan of reorganisation.
The court ruled on Friday (5 December) that IBC had met all of the statutory requirements to confirm its plan to emerge from Chapter 11.
"Today marks an important day in our company's future," said chief executive officer Craig Jung. "After a challenging four-year restructuring we are extremely pleased that we are in a position to be able to emerge from Chapter 11 as a standalone company."
"Going forward, IBC will be well positioned upon emergence to compete in the market place with sufficient cash to fund operations, a renewed focus on driving innovation and reinvigorating our brands, and the flexibility to test, qualify, and implement new methods of distribution to meet the changing needs of our customers."
IBC filed for bankruptcy protection in September 2004, citing liquidity issues resulting from declining sales, a high fixed-cost structure, excess industry capacity, and higher commodity costs.
The company said that 100% of local bargaining units have ratified modifications to the collective bargaining agreements that are a condition of the plan funding commitments.
"We will be working hard to satisfy all of the remaining conditions to the effective date of the plan, paving the way for our emergence from Chapter 11 as soon as possible," Jung concluded.
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