Interstate Bakeries negotiates new credit deal
KANSAS CITY, Mo., April 22 (Reuters) - Interstate Bakeries Corp IBCIQ.PK, the bankrupt maker of Wonder Bread and Twinkies snacks, said on Tuesday it has negotiated a new $250 million credit facility that extends the struggling company's key financing until Sept. 30.
The deal with a group of lenders led by JPMorgan Chase Bank provides for an amended and restated debtor-in-possession credit facility to replace the current $200 million "DIP" credit facility that expires on June 2. The new facility would be extended to Sept. 30.
The commitment is subject to a number of conditions, including approval from the U.S. Bankruptcy Court for the Western District of Missouri. A hearing on the matter is slated for April 29.
Interstate Bakeries has been struggling to come to terms with the International Brotherhood of Teamsters, which represents about 9,000 of IBC's estimated 25,000 workers. Without union support, the company has been unable to complete a reorganization plan.
The company reported a loss of $67.8 million for the quarter that ended March 8. (Reporting by Carey Gillam, editing by Dave Zimmerman)
