Twinkies maker has no buyout plan from Yucaipa

KANSAS CITY, Missouri (Reuters) - Interstate Bakeries Corp IBCIQ.PK, the bankrupt maker of Twinkies and Wonder Bread, said on Wednesday that despite a preliminary bid last year from outside investors, the company had not received any alternative proposals to keep it afloat and would proceed with plans for an internal reorganization.

Interstate Bakeries (IBC) said it had never received a joint plan of reorganization from Yucaipa Cos, despite overtures from the investment group late last year. A deadline for submitting such a plan expired January 15.

"They haven't provided the company with anything," said IBC spokeswoman Maya Pogoda.

Kansas City-based IBC said as a result, no auction will be held on January 22, as previously scheduled, and it will ask the bankruptcy court in Kansas City for permission to move forward with its reorganization plan at a hearing on January 29.

IBC's statement comes a day after Los Angeles-based Yucaipa filed a motion with the U.S. Bankruptcy Court in Missouri criticizing IBC's efforts.

Yucaipa told the court that IBC's reorganization was so flawed that it should not be allowed to be distributed to creditors for consideration.

Yucaipa said IBC's plan is "patently unconfirmable," in part because it relies on the company's ability to achieve concessions from the Teamsters, and the union has told the court it will work only with Yucaipa.

Teamsters spokesman David White said Wednesday the group would have no comment. A Yucaipa representative could not be reached for comment.

Yucaipa and the U.S. arm of Mexico-based Grupo Bimbo (BIMBOA.MX) had expressed preliminary interest in November in taking over the struggling IBC, one of the largest wholesale bakers and distributors of fresh-baked bread and sweet goods in the United States.

Bimbo backed away from the deal, but on December 13, Yucaipa, which is controlled by billionaire Ron Burkle, submitted a preliminary indication of interest describing a possible plan of reorganization.

IBC filed for bankruptcy protection in September 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.

A cornerstone of the IBC reorganization plan is a commitment by Silver Point Finance LLC to provide up to $400 million in exit financing upon IBC's emergence from Chapter 11.

IBC also has obtained funding agreements to support the reorganization plan from a group of lenders led by JP Morgan Chase Bank N.A.

IBC reiterated Wednesday that it continues to explore a variety of reorganization strategies, including the sale of all or parts of its operations.

(Reporting by Carey Gillam; editing by John Wallace)