Interstate Bakeries has said that it is nearing an agreement that could see it emerge from Chapter 11 bankruptcy after almost four years.
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The maker of Wonder Bread and Hostess said yesterday (2 September) in a filing with the US Securities and Exchange Commission that it is in the final stages of negotiating a reorganisation and financing plan.
“Our board of directors is hopeful that the required parties will reach agreement within the next few days, permitting our 2008 Form 10-K to be completed on a “going concern” basis and filed by September 15, 2008,” the filing read.
However, the company emphasised that “significant issues” still needed to be resolved in order for it to avoid liquidation.
Interstate has requested a longer-term and higher-value credit facility, while the company’s lenders have required the company reach an agreement in principle with the proposed equity sponsor of the reorganisation plan, the filing revealed. Without the extension, Interstate’s liquidity and asset valuation would be materially affected, the company added.
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