But investors who held onto the Hostess Twinkies and Wonder Bread maker's stock throughout the contentious bankruptcy finally have some good news to wash down their cupcakes with. Well, not exactly good news but better news.
Kansas City-based IBC on Tuesday reported a smaller monthly loss on higher sales, despite rising costs of flour, wheat and other commodities that have companies throughout the food industry filing or preparing to file for Chapter 11 themselves.
In a June 17 filing with the Securities and Exchange Commission, IBC reported a loss of $9.4 million on sales of $224.1 million during the four-week period ending May 3. During the previous month, the company lost $15.4 million on sales of $210.2 million.
IBC put off an April 23 confirmation hearing on its Chapter 11 plan as it continues to negotiate with the International Brotherhood of Teamsters. A new hearing to confirm the plan has yet to be scheduled, and IBC is also now considering selling the company if it can't confirm a plan.
To finance its operations in the interim, IBC recently boosted its $200 million debtor-in-possession facility by an additional $50 million. The facility matures on Sept. 30. As of May 3, IBC had borrowed $53.6 million from the DIP and had about $129.1 million letters of credit outstanding under the financing, according to Tuesday's SEC filing. - John Blakeley
More than four years into its bankruptcy case, Interstate Bakeries Corp. continues to negotiate a reorganization plan as it still looks to secure key union concessions.
