http://www.tradingmarkets.com/.site/news/Stock%20News/659505/Oct 01, 2007 (Datamonitor via COMTEX) -- IBC | charts | news | PowerRating -- Bankrupt US food company Interstate Bakeries has reached an agreement on contract modifications with the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union.
The company is currently trying to reach agreements regarding modifications to the collective bargaining agreements with its two principal labor unions, the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) and the International Brotherhood of Teamsters.
However, Interstate Bakeries said that if agreements with both parties are not reached, it will seek the approval of the bankruptcy court to extend the exclusive periods within which to file and solicit acceptances of a plan of reorganization for 30 days. The existing deadlines are October 5, 2007 and January 5, 2008, respectively.
Interstate Bakeries said that this would give the company an opportunity to formulate a rational strategy for maximizing value of the bankruptcy estates, including a sale of the company and/or its assets in its entirety, or in a series of transactions. The bankruptcy court motion on the extension of the exclusive periods will be heard on October 3, 2007.
Craig Jung, CEO, said: "We appreciate the responsiveness, hard work and professionalism that the BCTGM's leadership has demonstrated throughout this difficult process. Their commitment to our company and its employees is to be applauded. Our goal from the outset has been to return Interstate Bakeries Corporation to profitability through initiatives that lower costs and sustain competitive advantage. I believe these modifications take us a long way toward that goal."
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