US food company Interstate Bakeries has said that it has had to delay filing its fiscal year report.

The company had previously obtained an extension to last Friday for filing its Fiscal 2004 Form 10-K with the Securities and Exchange Commission because of delays encountered in finalising its audited financial statements for its 2004 fiscal year due to a previously announced investigation of the way in which the company sets its workers' compensation reserves and other reserves.

Interstate Bakeries, which owns the Wonder and Hostess brands, said that the delay in filing the report was due to certain factors including initial data entry and training deficiencies, uncertainty regarding anticipated fiscal 2005 first quarter results, resulting uncertainty as to whether the company may not be in compliance with covenants in its senior secured credit facility agreement during fiscal 2005, and the possibility, therefore, that the report of its independent auditors might contain a paragraph regarding doubt about the company's ability to continue as a going concern.

The company said that if certain circumstances were to develop, such as the auditor's report containing a going concern paragraph, or if the company does not file its fiscal 2004 report by 26 September 2004, this could result in the company being unable to borrow under its senior secured credit facility and the acceleration of outstanding indebtedness under the senior secured credit facility.