New York, Sep. 2 - Interstate Bakeries Corp, the bankrupt maker of Wonder Bread, said it is in the final stages of negotiating a reorganization plan which it hopes will allow it to emerge as a continuing business rather than liquidating, according to a securities filing Tuesday.
The maker of Twinkies, Hostess cakes and other baked goods, which has been in Chapter 11 for almost four years, said recent negotiations have brought the parties closer to agreement.
"Our Board of Directors is hopeful that the required parties will reach agreement within the next few days, permitting our 2008 Form 10-K to be completed on a 'going concern' basis and filed by September 15," the company said in a filing with the Securities and Exchange Commission.
Still, the Kansas City, Missouri-based company warned that "significant issues remain unresolved" and it can not assure that agreements including the extension and increase of the debtor-in-possession facility can be reached on a timely basis.
Interstate filed for bankruptcy protection on Sept. 22, 2004, citing declining sales, a high fixed-cost structure, excess industry capacity, rising employee health-care and pension costs, and higher costs for ingredients and energy.
The company posted net sales of $2.92 billion for the fiscal year ended June 2, 2007.