Nov. 7 deadline for Interstate Bakeries
Associated Press reports a bankruptcy judge in Kansas City, Mo., on Oct. 3 gave Interstate Bakeries Corp. and the Teamsters union 30 more days to resolve differences or develop plans for the company's future, including a possible sale. By Nov. 7, the company, which has been under Chapter 11 protection from creditors since September 2004, is required to file a reorganization plan.
The maker of Hostess Twinkies and Wonder bread said it has been unable to reach an agreement with the company's largest union, the Teamsters, over health and welfare concessions and a revamping of the company's distribution system. The Teamsters asked the judge to reject the company's request for an extension, saying other interested parties should be allowed to propose their own plans for the company's future.
Associated Press also reported Interstate Bakeries court filings indicate it has received interest from a number of parties willing to invest in the company once it got out of bankruptcy. But those agreements hinged on the company being able to get its top two unions to agree to a number of concessions.
The company has struck a tentative agreement with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, whose members are now voting on the new contract. But the Teamsters represent about 10,000 employees.