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Archive for Sunday, October 8, 2006

Interstate Bakeries unsure of its future

October 8, 2006

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— Slightly more than two years after filing for bankruptcy, Twinkie-maker Interstate Bakeries Corp. said Friday it's still unsure when, if ever, it will file a plan of reorganization.

The Kansas City-based company, which makes Wonder bread and Hostess snack cakes, released its annual reports for fiscal years 2004 and 2005, which have been held up by the company's financial woes.

In them, the company said it lost a combined $412.7 million and restated earnings for the previous two years.

It also released quarterly reports for the three quarters of 2005. It still hasn't released quarterly or annual reports for the year that ended this past May.

In its 2005 annual report, company officials noted it has had to push back the deadline for filing a plan to emerge from bankruptcy five times, now ending on Jan. 31, 2007.

If the company doesn't issue a plan by then or the plan isn't accepted by creditors by next April, other groups can offer their own plans.

Alvarez & Marsal, a turnaround firm brought in shortly after the company filed for Chapter 11 protection from creditors in September 2004, said it is still evaluating the company's operations as well as measuring its efforts to streamline production.

The company says there's no guarantee it will file a plan.

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