KANSAS CITY, Mo., Nov. 3 (UPI) -- Kansas City's Interstate Bakeries Corp. filed to amend its bankruptcy reorganization plan after securing $594 million in outside funding.
The makers of Wonder bread and Hostess Twinkies said Ripplewood Holdings LLC would provide $130 million for 4.42 million shares and convertible secured notes. General Electric Capital Corp. and GE Capital Markets Inc. are providing a $125 million revolving credit facility. Monarch Master Funding Ltd. will also arrange a $339 million credit facility for 4.42 million shares of new common stock, Bizjournals.com reported Monday.
In order to file the plan, IBC reached a compromise with the Official Committee of Unsecured Creditors, which withdrew its objections to the plan in exchange for the establishment of a trust of $5 million to be set up when the company emerges from bankruptcy.
General unsecured creditors and shareholders "reflect no recovery" in the plan, the company said.
But creditors will also receive rights to file lawsuits and a cash payment in the event the company is forced to liquidate.
However, "There can be no assurance that the litigation claims or the potential cash payment described above will result in any distributable value for general unsecured creditors," a company statement said.
