The Securities and Exchange Commission said yesterday (2 November) that it will recommend deregistering Interstate Bakeries’ stock if certain filings aren’t made by the end of the year.
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Interstate Bakeries filed for Chapter 11 bankruptcy in September 2004, and since then its stock has continued to be traded during the bankruptcy reorganisation process.
The disclosure was part of a release from the maker of Twinkies and Wonderbread revealing that the company has reached a settlement with the SEC regarding an investigation into workers’ compensation reserves.
The settlement calls for Interstate to agree to a cease-and-desist order from the SEC guarding against future record-keeping violations, internal controls and reporting. No fines will be imposed under the proposed settlement.
Interstate said that it has received a letter from the SEC enforcement division threatening to recommend deregistration if the company does not file quarterly financial reports for the 2006 fiscal year and the first quarter of 2007 by 31 December. “There can be no assurance that Interstate will be able to complete all such filings prior to the deadline,” the company said in a statement.
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By GlobalDataThe company filed its annual reports for FY 2004 and 2005 last month.
“If Interstate’s common stock is deregistered, publicly available information regarding IBC may be limited and the price of IBC common stock would likely suffer an immediate and significant decline,” Interstate said.
