Kansas City, Missouri, May 9, 2008 - Interstate Bakeries Corporation (IBC) today announced that it closed on an amended and restated Debtor-in-Possession (DIP) revolving credit agreement to replace the Company's former DIP credit agreement which was set to expire on June 2, 2008. Under the terms of the amended and restated DIP credit agreement, the maturity date has been extended to September 30, 2008 and the amount available for borrowing under the agreement has been increased from $200 million to $249.7 million subject to the terms of the agreement.
The Company received Court approval on April 29, 2008, to enter into the amended and restated DIP credit agreement with certain of the Company's existing lenders under its current DIP credit facility, other new lenders and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent for the lenders.
"We are very appreciative of the support our lenders have continued to demonstrate," said Chief Executive Officer Craig Jung. "With our new DIP facility in place IBC now has sufficient time and liquidity to support normal business operations while we continue discussions with multiple parties to achieve a confirmable, stand-alone plan of reorganization, and at the same time, continue to conduct a parallel process to sell the Company's business and assets."
As previously announced, IBC adopted this dual path process to ensure that it meets its obligation to protect and maximize constituent value in the event a confirmable, stand-alone plan of reorganization cannot be realized.
About the Company
Interstate Bakeries Corporation is one of the nation's largest commercial bakers and distributors of fresh-baked bread and sweet goods, sold under various brand names, including Wonder(R), Merita(R), Home Pride(R), Baker's Inn(R), Hostess(R), Drake's(R), and Dolly Madison(R). The company is headquartered in Kansas City, Missouri.
Interstate Bakeries Corporation filed for bankruptcy protection on September 22, 2004, citing liquidity issues resulting from declining sales, a high fixed-cost structure, excess industry capacity, rising employee healthcare and pension costs, and higher costs for ingredients and energy. The Company continues to operate its business in the ordinary course as a debtor-in-possession.