Interstate Bakeries Corporation (OTCBB:IBCIQ) said today, in response to
media and other inquiries, that it has been engaged this week in
productive discussions with GE Capital Corp. to finalize documentation
for an asset-based revolving credit agreement.
IBC said it is hopeful that in the very near future documentation for
the revolving credit agreement will be finalized and the exit financing
will close.
IBC said that all parties in the discussion are focused on the
importance of completing the transaction, in order to allow IBC to
emerge from Chapter 11 and preserve the jobs of IBC’s 22,000 employees.
About the Company
Interstate Bakeries Corporation 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, Missouri. The company employs 22,000
persons, of which approximately 18,000 are represented by the
International Brotherhood of Teamsters and the Bakery and Confectionery
Workers International Union of America. IBC has major facilities and
significant employment in the following states: California (1,887
employees), Colorado (252), Florida (969), Georgia (553), Illinois
(1,722), Indiana (1,094), Iowa (408), Kansas (1,037), Kentucky (309),
Louisiana (521), Maine (505), Massachusetts (322), Michigan (441),
Missouri (1,436), Montana (324), Nevada (341), New Jersey (625), New
York (807), North Carolina (793), Ohio (1,358), Oklahoma (453),
Pennsylvania (716), Tennessee (816), Utah (634), Virginia (262),
Washington (281), Wisconsin (222), with approximately 3,000 total
employees in other states.
Forward Looking Statement
Some information contained in this press release may be forward-looking
statements within the meaning of the federal securities laws. These
forward-looking statements are not historical in nature and include
statements that reflect, when made, the Company’s views with respect to
current events and financial performance. These forward-looking
statements can be identified by forward-looking words such as “may,”
“will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,”
“could,” “should” and “continue” or similar words. These forward-looking
statements may also use different phrases. All such forward-looking
statements are and will be subject to numerous risks and uncertainties,
many of which are beyond our control that could cause actual results to
differ materially from such statements. Factors that could cause actual
results to differ materially include, without limitation: the ability of
the Company to continue as a going concern; the ability of the Company
to consummate its plan of reorganization, which was confirmed by the
bankruptcy court on December 5, 2008; the ability of the Company to
obtain the financing necessary to implement its business plan and emerge
from Chapter 11; the ability of the Company to operate pursuant to the
covenants, terms and certifications of its DIP financing facility, as
amended and restated; the ability of the Company to successfully
negotiate an extension and increase in the amount available under, or
refinance, its DIP financing facility, if needed, which expires on
February 9, 2009; the Company’s ability to implement its business plan;
the significant time that is and will be required by management to
consummate the plan of reorganization, as well as to continue to
evaluate various alternatives in the event the plan of reorganization is
not consummated, including, but not limited to, the sale of the Company
or some or all of its assets, infusion of capital, debt restructuring,
or any combination of these options and, absent the ability to pursue
any such strategy, the orderly wind-down of the Company's operations;
the ability of the Company to obtain court approval with respect to
motions in the Chapter 11 proceeding filed by it from time to time;
risks associated with third parties seeking and obtaining court approval
for the appointment of a Chapter 11 trustee or to convert the Chapter 11
proceeding to a Chapter 7 proceeding; risks associated with cost
increases in materials, ingredients, energy and employee wages and
benefits; risks associated with the Company’s restructuring activities,
including the risks associated with achieving the desired savings; the
Company’s ability to successfully reject unfavorable contracts and
leases; the duration of the Chapter 11 process; the ability of the
Company to obtain and maintain adequate terms with vendors and service
providers; the potential adverse impact of the Chapter 11 proceeding on
the Company’s liquidity or results of operations; the Company’s ability
to operate its business under the restrictions imposed by the Chapter 11
process; the instructions, orders and decisions of the bankruptcy court
and other effects of legal and administrative proceedings, settlements,
investigations and claims; risks associated with product price
increases, including the risk that such actions will not effectively
offset inflationary cost pressures and may adversely impact sales of the
Company’s products; the effectiveness of the Company’s efforts to hedge
its exposure to price increases with respect to various ingredients and
energy and the Company’s ability to hedge given its financial condition;
the ability of the Company to attract, motivate and/or retain key
executives and employees; changes in its relationship with employees and
the unions that represent them; successful implementation of information
technology improvements; increased costs and uncertainties with respect
to a defined benefit pension plan to which we contribute; costs
associated with increased contributions to single employer, multiple
employer or multi-employer pension plans; the impact of any withdrawal
liability arising under the Company’s multi-employer pension plans as a
result of prior actions or current consolidations; the effectiveness and
adequacy of our information and data systems; changes in general
economic and business conditions (including in the bread and sweet goods
markets); changes in consumer tastes or eating habits; acceptance of new
product offerings by consumers and the Company’s ability to expand
existing brands; the performance of the Company’s recent and planned new
product introductions, including the success of such new products in
achieving and retaining market share; the effectiveness of advertising
and marketing spending; any inability to protect and maintain the value
of the Company’s intellectual property; future product recalls or food
safety concerns; actions of competitors, including pricing policy and
promotional spending; bankruptcy filings by customers; costs associated
with environmental compliance and remediation; actions of governmental
entities, including regulatory requirements; the outcome of legal
proceedings to which we are or may become a party; business disruption
from terrorist acts, our nation’s response to such acts and acts of war;
and other factors.
These statements speak only as of the date of this press release, and we
disclaim any intention or obligation to update or revise any
forward-looking statements to reflect new information, future events or
developments or otherwise, except as required by law. We have provided
additional information in our historical filings with the SEC, which
readers are encouraged to review, concerning other factors that could
cause actual results to differ materially from those indicated in the
forward-looking statements.
Sitrick And Company
Michael S. Sitrick or Lewis M. Phelps
310-788-2850
