Interstate Bakeries Corporation (IBC) yesterday (2 August) filed for an extension of its US$200m debtor-in-possession (DIP) financing facility to 2 June 2007. The maturity date coincides with the end of IBC’s 2007 fiscal year.
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JPMorgan Chase Bank, the agent of the current DPI which is due to expire on 22 September 2006, will continue to act as agent and syndicate the existing credit facility.
Tony Alvarez II, chief executive of IBC, said: “We are pleased to have reached agreement with JPM Chase regarding the extension and believe the proposed terms provide us with the liquidity necessary to complete our Chapter 11 restructuring.
“The improvement in financial performance has taken longer to complete principally due to intense competitive pressures and significantly higher ingredient costs, particularly flour and sugar, and energy costs negatively impacting our fiscal 2006 performance. We believe fiscal 2007 will be a transitional year for the company during which the operational, financial and marketing initiatives we have implemented during our restructuring will begin to impact our results.”
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