IBC plans to emerge from Chapter 11 within the next several weeks concurrently with the funding of its previously announced plan funding commitments. The company said that it will be focusing all of its efforts on finalizing all documentation for the exit financing contemplated by the plan funding commitments and satisfying the remaining conditions to closing contemplated under the amended joint plan of reorganization and the funding commitments.
It added that it can give no assurance that the plan funding commitments will be closed and, accordingly, that the amended joint plan of reorganization will become effective.
"Today marks an important day in our company's future. After a challenging four-year restructuring we are extremely pleased that we are in a position to be able to emerge from Chapter 11 as a standalone company," said CEO Craig Jung. "Going forward, IBC will be well positioned upon emergence to compete in the market place with sufficient cash to fund operations, a renewed focus on driving innovation and reinvigorating our brands, and the flexibility to test, qualify and implement new methods of distribution to meet the changing needs of our customers."
Jung said that, "IBC could not have reached this important milestone in the reorganization without the hard work and dedication of every IBC employee nationwide. We owe our employees, on whom tremendous demands have been placed to make the new, reorganized IBC a reality, a sincere and heartfelt thanks for a job well done. The support and vote of confidence we received from our pre-petition lenders, 100% of whom voted in favor of the plan, and Ripplewood were critical in our ability to achieve plan confirmation today and position us to emerge as a standalone company. Our customers and vendors have also stood with us through this extremely difficult time, and for their loyalty, we are extremely grateful."
The company also noted that 100% of local bargaining units have ratified modifications to the collective bargaining agreements that are a condition of the plan funding commitments. "We greatly appreciate the critical role union leadership has played in the ratification process," Jung said.
"We will be working hard to satisfy all of the remaining conditions to the effective date of the plan, paving the way for our emergence from Chapter 11 as soon as possible," Jung concluded.
Interstate Bakeries is one of the nation's largest commercial bakers and distributors of fresh-baked bread and sweet goods, sold under various brand names, including Wonder, Merita, Home Pride, Baker's Inn, Hostess, Drake's and Dolly Madison. The company is headquartered in Kansas City, Mo.
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