I.B.C. gets four-month extension to file bankruptcy plan
January 29, 2007
by FoodBusinessNews.net Staff
KANSAS CITY — Interstate Bakeries Corp. last week won a four-month extension to file its plan describing how it intends to exit Chapter 11.
Judge Jerry W. Venters of the U.S. Bankruptcy Court in Kansas City on Jan. 24 signed off on I.B.C.’s request to retain control of its bankruptcy case through June 2. Mr. Venters also gave I.B.C. until Aug. 1 to lobby creditor support for a plan.
I.B.C.’s control of its bankruptcy case was set to end Jan. 31, but the company said it needed more time to find a new chief executive to replace outgoing interim c.e.o. Tony Alvarez of turnaround firm Alvarez & Marsal.
I.B.C. recently agreed to revamp its board of directors to avoid a legal battle it said would prove disastrous to its bankruptcy reorganization.
In a regulatory filing last month, I.B.C. acknowledged that the quarrel over the board’s makeup was hurting the company’s ability to find a new c.e.o. More than one c.e.o. candidate has declined to accept the job because the dispute was unresolved, the company said.
Separately, Mr. Venters approved the sale of a pair of Interstate-owned properties located in South Carolina and Florida. A joint venture controlled by Hilco Trading Co. agreed to acquire the properties for a total of $1.1 million.