David Kirkpatrick

December 5, 2008

Bread and cake maker back in the black …

… after four years of bankruptcy. Interstate Bakeries Corp., should be out from under protection here in the next few weeks. This means Twinkies, Wonder Bread, and Dolly Madison products are safe.

God bless us, everyone.

From the link:

Interstate Bakeries Corp., the maker of Twinkies, said a federal Bankruptcy Court approved its amended reorganization and it plans to emerge from Chapter 11 within the next few weeks.

Interstate filed for bankruptcy in September 2004. It is best known for its Wonder, Hostess, Drake’s, and Dolly Madison brands.

Silver Point Finance, LLC, Monarch Alternative Capital L.P. and McDonnell Investment Management LLC, which hold 53 percent of Interstate’s pre-petition secured debt, committed $339 million to a new secured term loan.

In addition, Ripplewood Holdings will invest $130 million.

Under the terms of the revised plan, holders of unsecured claims and holders of existing common stock would receive no distribution.

The company also said labor unions agreed to modifications to existing labor contracts that will lower the cost structure.

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