Michael Moore has entered a forty-day period of mourning. Be Seeing You,
Chris
Posted on 09/22/2004 6:09:54 AM PDT by presidio9
Interstate Bakeries Corp. filed for bankruptcy on Wednesday after struggling with more than $1.3 billion in debt and weak demand for bread products amid the popularity of low-carbohydrate diets.
The largest U.S. wholesale bakery, maker of Wonder bread and Hostess Twinkies, also accepted the resignation of James Elsesser as chairman and chief executive, according to the Chapter 11 filing in the U.S. Bankruptcy Court for the Western District of Missouri in Kansas City.
The company named Leo Benatar as nonexecutive chairman and Antonio Alvarez as chief executive, according to court papers. Alvarez is managing director of the turnaround firm Alvarez & Marsal, which was hired to assist Interstate in restructuring.
Interstate said it would seek court approval for a debtor-in-possession financing facility not to exceed $200 million and that it has received a $200 million financing commitment from JPMorgan Chase Bank.
Shares of Interstate plunged 62 percent in early morning trading on the Inet electronic brokerage network. The stock, which traded as high as $16.24 six months ago, fell to $1.25, down $2.02 from its close at $3.27 on Tuesday on the New York Stock Exchange (news - web sites).
The company said earlier this month its lenders had allowed additional borrowing on its revolving credit line, but the facility required the company to file its fiscal 2004 financial statements by Sept. 26. The company's fiscal year ended May 29.
Interstate has delayed filing its annual report twice because of uncertainty over its upcoming financial results and whether it will be in compliance with certain debt covenants during its fiscal year 2005.
Kansas City, Missouri-based Interstate, along with other food companies, has been hurt by decreased demand for bread and pastries due to the popularity of low-carbohydrate diets.
Furthermore, the U.S. Securities and Exchange Commission (news - web sites) launched an accounting probe into the company in July, looking into how it set workers' compensation and other reserves.
The company, which operates bakeries and outlet stores and distributes its products to retailers, said it expects day-to-day operations to continue as usual during the reorganization and has sought authority from bankruptcy court to pay employees and honor benefits without interruption or delay. (Additional reporting by Jessica Wohl)
Michael Moore has entered a forty-day period of mourning. Be Seeing You,
Chris
Twinkies ceased to be considered "food" when their shelf-life exceeded 20,000 years. I won't miss 'em.
Reminds me of the time I was riding in a elevator with a young lady who had a twinkie in her hand. I said to her, "could I eat your twinkie?", I never did understand why she blushed like she did.
1) Anti-Smoking nazis
2) Anti-Fast Food nazis
3) Anti _________ nazis...
Why didn't they just switch to low carb bread? Its outragous the prices they get for that tasteless stuff.
Manufacturer of old-fashioned, low-quality, tasteless products files for bankruptcy. No tears here.
It the free market...and that vixen Little Debbie. Her snack cake Swiss Rolls are as good as Ho-Hos, but half the price...(but the L'il Debbie people just haven't mastered Twinkies.)
Wonder Bread?
I've always wondered what kind of person eats that crap or feeds it to their children. It has zero nutritional value, and turns into sugar during digestion.
I hate to see another American business go under. What a shame.
I will miss Suzy Qs though.
Yes, clearly this is due to outsourcing and is all Bush's fault.
What a maroon!
Does he have boobs?
How ironic that this is in the news just after the Twinkies clinched their division.
No, just extra creme filling.
It's just a reorganization.
The Twinkie's not dead yet.
(Tough to kill the little buggers.)
I stopped eating their products when they stopped selling individually wrapped "Chocodiles" for 25 cents. They were good with a coke after a hard day of work or study.
Our local store owner, as we have no large supermarkets within a five mile radius, complains that the reason there is no bread on the shelf Wednesday afternoons is that the union bread truck drivers working for Interstate have this as a day off. If they weren't union do you think they wouldn't be working?
No, just a couple of Hostess Cupcakes.
I was about to ask the same thing. When did Twinkie get huge knockers? Or is he a she now?
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