Interstate Bakeries moved a step closer to emerging from Chapter 11 bankruptcy yesterday (26 January) when the US bakery group reached an agreement in principle to secure a revolving credit facility with GE Capital and other lenders.
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The Kansas-based maker of Wonder Bread and Twinkies filed for bankruptcy in September 2004.
“Given today’s challenging credit markets, our road to emergence from Chapter 11 has been longer and more challenging than anticipated, but we have now reached the final stretch,” CEO Craig Jung said.
“While much work remains to be done to close our financing transactions, we believe that our accord with GE Capital has cleared the last significant obstacle to our emergence.”
Interstate’s existing debtor-in-possession financing matures and exit-financing commitments expire on 9 February.
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By GlobalDataA spokesperson for the company told just-food that it expected to exit Chapter 11 “very soon”, possibly a matter of “days”.
“Existing financing expires on February 9, it is reasonable to assume that everybody is working very hard to get it done before that date,” the spokesperson said.
