I.B.C. monthly loss soars to $20 million

by Eric Schroeder
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KANSAS CITY — Interstate Bakeries Corp. sustained its largest monthly loss since November 2005, losing $20,937,450 in the four weeks ended Nov. 15, which compared with a loss of $14,742,445 in the four weeks ended Oct. 18, according to an 8-K filed Dec. 30 with the Securities and Exchange Commission.

Sales in the four weeks ended Nov. 15 were $211,621,699, down 2% from $215,353,338 in the four-week period ended Oct. 18. The decline marked the seventh consecutive month of lower sales.

Operating expenses finished at $91,913,276, down 14% from $107,162,314 in the previous period. Ingredients, packaging and outside purchasing costs were $61,094,423, virtually unchanged from $61,737,458, while direct and indirect labor costs fell to $33,757,863 from $34,552,692 in the previous period.

I.B.C. recorded restructuring and reorganization charges of $27,133,791, including $20,121,250 related to the company’s complete withdrawal from the American Bakers Association retirement plan, $7,016,025 in professional fees, a $3,698 loss on sale of assets and $69,358 in "other" restructuring expenses. The charges were only partially offset by $26,260 on the gain on the sale of assets, $21,187 related to KERP bonus plan, $14,647 in adjustments to lease rejection expense and $14,446 in interest expense.

As of Nov. 15, I.B.C. had borrowed $113.2 million under its $309 million debtor-in-possession credit facility. The company said it has $141 million of letters of credit outstanding. The amount of the credit facility available for borrowing was $54.8 million as of Nov. 15.

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