I.B.C. asks court to delay hearing on plan
April 21, 2008
by Eric Schroeder
KANSAS CITY — Interstate Bakeries Corp. on Friday asked the U.S. Bankruptcy Court to delay its reorganization plan hearing that currently is set for April 23. I.B.C. did not propose a new date for the hearing, which already has been pushed back several times, most recently to the April 23 date from the previously scheduled March 12.
I.B.C. said it needs more time to continue discussions with multiple parties regarding modifications to its plan of reorganization and related exit financing.
"This additional time is also needed for the company to continue to pursue the on-going sale process that was initiated to sell all or portions of the company’s businesses and assets in the event that a stand-alone reorganization plan is not achievable," I.B.C. said. "The company intends to file further pleadings with the Bankruptcy Court regarding either of these options as appropriate."
In addition to requesting a delay of the hearing, I.B.C. said it has reached agreement with lenders on an amended and restated credit facility to replace its current DIP credit facility, which expires June 2. Under terms of the commitment letter, I.B.C. said the maturity of the DIP credit facility would be extended to Sept. 30 and the amount available for borrowing under the DIP credit facility would be increased to $250 million from $200 million.
A hearing is set for April 29 on the DIP credit facility.