I.B.C. seeks additional financing, deadline extension
September 11, 2008
by Eric Schroeder
KANSAS CITY — Interstate Bakeries Corp. has called on the U.S. Bankruptcy Court Western District of Missouri to move forward on its request to borrow an additional $79 million under its debtors-in-possession (DIP) financing. If authorized, I.B.C.’s financing would be upped to nearly $329 million from its current $250 million level.
The wholesale baker also requested the court extend the expiration deadline on the DIP financing to Feb. 7, 2009, from Sept. 30, 2008, a move the company said it would allow it to move ahead with discussions with potential investor Ripplewood Holdings.
"After almost four years in bankruptcy, the debtors (I.B.C.) have finally reached the proverbial eleventh hour and face two choices: a) reach final agreement on the terms of a standalone plan of reorganization with a third-party investor, Ripplewood Holdings, its senior secured lenders and (hopefully) certain of its other constituents, or b) absent agreement, the debtors will have no choice but to pursue other reorganization alternatives that have not previously proven viable or if circumstances dictate, commence the orderly wind-down of their businesses," I.B.C. said.
A hearing on the financing matter is set for Friday morning.