Interstate Bakeries seeks four-month DIP maturity extension to explore plan alternatives

By Caroline Salls

Pittsburgh, Nov. 30 - Interstate Bakeries Corp. is looking to extend the maturity date of its debtor-in-possession financing to June 2, 2008 from Feb. 9 to allow the company to explore alternatives to its current reorganization plan, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

According to the motion, now that the company has fulfilled its mandate to develop a strategic plan to restructure its business and financial operations and devise a path to emerge from Chapter 11, Interstate has begun to explore alternatives.

In addition, Interstate said the DIP extension will let it continue to work with all its constituents to refine its reorganization plan and to allow its unsecured creditors and equity committee to research other avenues for emergence.

As of Thursday, the company said it had not borrowed on the amended DIP facility, but it had issued $122.1 million in letters of credit to support its insurance programs.

A hearing is scheduled for Dec. 19.

The Kansas City, Mo., bakery operator filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.

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