Interstate Bakeries sets bid procedures for $10 million Lakewood property sale

By Caroline Salls

Pittsburgh, Feb. 23 - Interstate Bakeries Corp. requested court approval of the bid procedures for the proposed $10 million sale of the company's property in Lakewood, Wash., according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

Canada Bread USA Inc. is the stalking horse bidder.

According to the motion, Interstate is no longer using the property as a bakery, and it is winding down its remaining product disposition and transfer operations there.

The $10 million proposed purchase price includes $5.5 million for the land and building and $4.5 million for personal property.

Canada Bread has made a $1 million letter-of-credit deposit.

The stalking horse agreement contains bid protection that includes $200,000 to be paid to Canada Bread to induce it to make the first qualified bid and payment of up to $50,000 in expense reimbursement.

The minimum initial overbid must be at least $10.25 million.

The auction is scheduled for March 9, and the sale hearing will be held March 14.

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

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