Washington, Dec. 13 - The International Brotherhood of Teamsters and The Yucaipa Companies, LLC announced today that they have submitted a preliminary proposal for the reorganization of Interstate Bakeries Corporation (IBC).
The proposal represents a collaborative effort by Yucaipa and the Teamsters to identify a viable path for IBC to emerge from bankruptcy with the greatest likelihood of success and maximizes the value of IBC's estate for creditors. Under the proposal, Yucaipa and the Teamsters will jointly and exclusively sponsor a plan of reorganization that provides for the payment in full of claims held by IBC's senior secured lenders and values the business at an enterprise valuation of $580 million.
"We are pleased that with Yucaipa's unwavering support we have reached this important milestone in IBC's Chapter 11 case," said Jim Hoffa, Teamsters General President. "After more than three years in bankruptcy, IBC is now poised to emerge from Chapter 11 as a stronger and healthier company."
"Although sacrifices will be required from all employees of IBC to confirm our plan of reorganization, we believe this plan will preserve the greatest number of jobs for our members," said Rich Volpe, IBT Teamsters Director of the Bakery and Laundry Conference.
"We are excited by the opportunity to revitalize a company like Interstate Bakeries that has provided good union jobs for so many years to working Americans," said Ron Burkle, managing partner of Yucaipa. "Our involvement in Interstate Bakeries reflects this philosophy."