I.B.C. emerges from bankruptcy
February 03, 2009
by Eric Schroeder
KANSAS CITY — Nearly 4½ years after filing for Chapter 11 bankruptcy protection, wholesale baker Interstate Bakeries Corp. on Tuesday finally emerged from bankruptcy after successfully concluding its financial reorganization with the unanimous support of union locals and secured creditors.
"Today marks a new beginning for Interstate Bakeries," said Craig Jung, chief executive officer for I.B.C. "We are now a stronger and more competitive company. With this period behind us, we can now unleash and empower 22,000 I.B.C. employees to better serve our consumers and customers, revitalize our core brands, and launch product innovation that will profitably grow our business."
Mr. Jung thanked I.B.C.’s employees for their sacrifices and union leaders for their commitment to saving jobs during the proceedings.
"Their actions made possible the financing required to execute a business plan that will build competitive advantage and secure our company’s future," he said. Mr. Jung also thanked Ripplewood Holdings L.L.C., a private equity firm, for its significant investment in the company, as well as all the other companies who are participating in I.B.C.’s new financing, including GE Capital, J.P. Morgan, McDonnell Investment Management L.L.C., Monarch Alternative Capital L.P. and Silver Point Finance, L.L.C.
John Cahill and Greg Murphy, industrial partners of Ripplewood who will now serve on I.B.C.’s board of directors, said they were pleased to have closed the transaction.
"I.B.C. has outstanding brands in the major bread and snack cake categories that we believe best position the company for future success," Mr. Cahill and Mr. Murphy said.
The announcement comes less than a week after a U.S. bankruptcy court judge approved changes to I.B.C.’s reorganization plan that included GE Capital cutting its lending total to $105 million from $125 million with other lenders agreeing to make up half of the $20 million reduction in financing. I.B.C. had faced a deadline of Feb. 9 to work with lenders and investors to exit bankruptcy or risk losing its financing.