Interstate Bakeries Corp. (IBC) is to press ahead with its own plan to revive the business, despite a rival proposal from a consortium including Mexico’s Grupo Bimbo waiting in the wings.
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The ailing US baker, which filed for bankruptcy three years ago, believes it can breathe life into the business with a reorganisation plan backed by financing from bodies including JP Morgan bank.
IBC has filed its plan with a bankruptcy court in Missouri ahead of a hearing tomorrow (7 November) that will also decide whether the Bimbo-backed consortium can file its own proposals.
The Bimbo plan, drawn up with investment fund Yucaipa Companies and the Teamsters trade union, will see the Mexican firm run IBC, maker of brands including Twinkie bread.
The Teamsters union has attacked IBC’s plans, labelling them as “a recipe for another bankruptcy”. However, IBC chief executive Craig Jung stood by the proposals.
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By GlobalDataJung said: “We believe strongly that our reorganisation plan is the best alternative to maximize value for our constituents in the bankruptcy process, build competitive advantage, and secure the jobs of IBC employees. It is based on our business plan, which has been endorsed by everyone who will be involved in its implementation going forward – except for the Teamsters.”
However, Jung said IBC’s management is willing to listen to other strategies for the business – including the Bimbo-backed proposal.
“Now that management has fulfilled its obligation to put forth what we believe is the best possible plan, we are opening the door for others,” Jung said. “If Yucaipa or anyone else has a better idea about how to help this Company emerge from Chapter 11, secure jobs, and maximise value for creditors, we welcome the opportunity to review the details of their proposal.”
