Washington / DC. (ibt) Interstate Bakeries Corporation (IBC) announced that it may be able to exit bankruptcy based on a framework put together by the Teamsters Union, Ripplewood Holdings and Silver Point Capital. IBC also achieved, via bankruptcy court, a financing extension until February 2009 – possibly providing it enough time to emerge from bankruptcy as a stand-alone company.
The Teamsters Union announced late last month that it had reached terms with Ripplewood, marking the first step in the process. The financing extension and IBC management´s support of the Ripplewood plan are important key steps for the company to emerge from this complicated bankruptcy case.
«Our plan with Ripplewood is the most viable route that Interstate Bakeries can take to emerge from the cloud of bankruptcy and become a strong stand-alone company once again», said Jim Hoffa, Teamsters General President. «In these uncertain economic times, the fact that a company employing more than 9’000 Teamster members now has the opportunity to emerge from bankruptcy is great news».
The company must now draft and present a plan of reorganization that needs to be approved by the court, affected creditors and ultimately confirmed by the court. Under this scenario, IBC could emerge from its four-year bankruptcy in early 2009. The details will be disseminated to Teamster local unions and members over the next several weeks. Teamster members will need to ratify the terms of the contract with the new IBC for the process to move forward. «We believe this plan will preserve the greatest number of jobs for our members», said Richard Volpe, Director of the Teamsters Bakery and Laundry Conference. «We are appreciative of Ripplewood´s involvement and persistence to get us to this position».
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