I.B.C. continues 'productive discussions' with lenders
January 14, 2009
by Eric Schroeder
KANSAS CITY — Interstate Bakeries Corp. said late Tuesday that it is in "productive discussions" with lender GE Capital Corp. regarding an asset-based revolving credit agreement that appears to be delaying its bankruptcy exit.
The company said it is hopeful the documentation will be finalized "in the very near future," and that once it does exit financing will close.
"All parties in the discussion are focused on the importance of completing the transaction, in order to allow I.B.C. to emerge from Chapter 11," I.B.C. said.
General Electric Capital Corp. and GE Capital Markets agreed last year to provide $125 million in revolving credit to I.B.C., which is facing a Feb. 9 deadline on its debtor-in-possession financing. The company had planned to emerge from bankruptcy by Dec. 15.