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January 16, 2008

US: IBC execs push on amid no rival bids

Interstate Bakeries Corp. said today (16 January) it would push on with its plans to restructure the ailing US baker after no other consortiums stepped forward to save the company.

Interstate Bakeries Corp. said today (16 January) it would push on with its plans to restructure the ailing US baker after no other consortiums stepped forward to save the company.


IBC said it had not received a mooted proposal from investment fund Yucaipa Cos. and the Teamsters union, which last month had indicated their interest in the business.


A third member of the Yucaipa-led consortium, Mexico-based bakery giant Grupo Bimbo, had pulled out of the race for IBC.


IBC’s management, led by CEO Craig Jung, has drawn up its own plan for the Twinkies bread maker but had welcomed alternative proposals and offered to open up the company’s books to potential suitors.


However, no firm alternative offers were forthcoming and IBC said it would seek permission from a bankruptcy court in Kansas to press ahead with its own plans.


Nevertheless, IBC’s management must win union backing for its plans and to secure the funding it needs to revive the company.


So far, IBC executives have won support from the majority of unions, except Teamsters, which has long criticised the management’s reorganisation proposals.

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