Judge approves amendments to I.B.C. plan
January 29, 2009
by Bakingbusiness Staff
KANSAS CITY — A U.S. bankruptcy court judge today approved changes to Interstate Bakeries Corp.’s reorganization plan, setting the stage for the company to emerge from bankruptcy. The company now has until Feb. 9 to work with lenders and investors to exit bankruptcy or risk losing its financing.
Under new terms of the reorganization plan, General Electric Capital Corp. has agreed to lend I.B.C. up to $105 million and charge higher interest rates. Originally, GE Capital was set to lend $125 million. Instead, other lenders have agreed to make up half of the $20 million reduction in financing.
I.B.C. and its lenders continue to work on closing the financing.