The creditors and shareholders of Interstate Bakeries Corp, the producer of the Hostess Twinkies and Wonder Bread brands which has been operating under Chapter 11 bankruptcy protection for two years, have announced that they have reached agreement in principle on the election of a new board.

Interstate's bank lenders and committees representing its creditors and stockholders have preliminarily agreed to the make-up of a new seven-member board. The board will also include a new chief executive to replace outgoing interim CEO Tony Alvarez of accountants Alvarez & Marsal.
Earlier this month, Interstate's largest shareholder hedge fund Brencourt Advisors LLC, which owns 8.37% of the company, launched a lawsuit to force a shareholders' meeting to have the board replaced.