IBC: Lenders give new deadline

Kansas City / MO. (wib) Interstate Bakeries Corporation (IBC) has been in Chapter 11 bankruptcy for three years. Its lenders, which include JPMorgan Chase Bank NA, said that if IBC doesn´t publicly announce an agreement «in principle» with its two largest unions and have those agreements publicly supported by an exit financing lender by January 29th, the lenders will give IBC a written notice giving the company 21 days to present a revised plan. IBC has not been able to reach complete agreements with its two largest unions about a reorganization plan that involves a revised delivery system and union concessions. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union reached a preliminary agreement with IBC and ratified the most of 119 revised contracts. The International Brotherhood of Teamsters said it will not reach an agreement with IBC and joined investor Yucaipa Companies LLC and a competing baker, Mexico-based Grupo Bimbo, in an ongoing effort to buy IBC. Together, the two unions represent nearly 20.000 of IBC´s 25.000 workers. The Teamsters, along with Yucaipa and Grupo Bimbo, have time until December 13th to make an offer for IBC; all other bidders until January 15th.