Teamsters back IBC reorganization plan (maker of Twinkies and Wonder Bread)

[Omaha Steve]

Teamsters back IBC reorganization plan

Kansas City, Mo. -

The following is a brief of the story. For the full version, see the Monday, Nov. 17 print edition of the BDN.

Members of the Teamsters union have overwhelmingly approved modifications to their contract with Interstate Bakeries Corp., clearing the way for the maker of Twinkies and Wonder Bread to come out of bankruptcy no later than February. Interstate Bakeries is one of the largest employers in Boonville, operating a bakery and outlet store on Main Street.

The union, which represents about 9,500 of the company’s 23,000 employees, helped torpedo a previous reorganization plan after Interstate Bakeries was unable to gain workplace and welfare concessions.

“IBC Teamsters were faced with a difficult decision and they voted loud and clear to preserve good American jobs at Interstate Brands Corporation,” Teamsters General President Jim Hoffa said. “The newly ratified agreement paves the way for the company to exit bankruptcy as a stand-alone entity, which is the best opportunity for our members to keep their jobs.”
The company filed for Chapter 11 bankruptcy protection in September 2004.

Under the plan approved by the Teamsters Wednesday, Silver Point Capital LP and two other lenders who together hold $451 million of Interstate Bakeries’ pre-petition secured debt will exchange that for $147.3 million in notes and $85.8 million in debt that can be exchanged for shares in the reorganized company.

[kestrel91316]

1. I just hope they work things out so they can keep making Twinkies.

I haven't eaten them since college, but I really don't want to live in a world without them.

[TomInTib]

2. I just want to know how they are made.

Always have.

I used to break them open and remove the filling with my tongue, having no idea in what good stead that practice would hold me.

[DainBramaged]

3. Wow, I KNEW Twinkies would outlast IBC

It amazes me that YET AGAIN, Union workers have to make concessions to 'help' a poorly managed company out of bankruptcy.


1-20-09 can't come fast enough.