Mexico-based bakery giant Grupo Bimbo has pulled out of the consortium planning to buy ailing US firm Interstate Bakeries Corp.
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Last month, Bimbo had joined investment fund Yucaipa Cos and the Teamsters union with plans to revive IBC, which went into bankruptcy in 2004.
The Bimbo consortium had won access to the company’s books after the IBC management, which had won court approval for its own rescue plan, also decided to invite alternative proposals.
However, Bimbo said yesterday (13 December) that it was “not currently in the position to submit a bid” for IBC, leaving its partners to proceed with the plan.
Yucaipa and Teamsters said it had submitted a “preliminary proposal” for the “reorganization” of IBC. The plan, it said, meets the US$580m valuation put on the company by the IBC management.
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By GlobalData“We are pleased that with Yucaipa’s unwavering support we have reached this important milestone in IBC’s Chapter 11 case,” said Jim Hoffa, Teamsters general president. “After more than three years in bankruptcy, IBC is now poised to emerge from Chapter 11 as a stronger and healthier company.”
Yucaipa managing partner Ron Burkle added: “We are excited by the opportunity to revitalize a company like Interstate Bakeries that has provided good union jobs for so many years to working Americans. Our involvement in Interstate Bakeries reflects this philosophy.”
