Exhibit 99.2
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Contact:
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Sandra Sternberg
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Maya Pogoda
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Sitrick And Company
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310-788-2850
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IBC Updates Discussions with Unions
Kansas City, Missouri – October 1, 2007 --
Interstate Bakeries Corporation (IBC) (OTC:IBCIQ.PK) said today
that it has not been able to reach a mutually acceptable agreement
with the International Brotherhood of Teamsters (IBT) on
modifications to its collective bargaining agreements necessary to
allow a more capable and cost-effective path-to-market, specific
health and welfare concessions, and increased work rule
flexibility.
IBC announced on September 28, 2007, that it reached an agreement
with the Bakery, Confectionery, Tobacco Workers and Grain Millers
International Union, and that it believed the ratification process
was under way.
The Company previously stated that if agreements with its two
principal labor unions were not reached by September 30, it would
seek interim Bankruptcy Court approval for a 30-day extension from
existing exclusivity deadlines to allow sufficient time to
formulate a plan to maximize the value of the bankruptcy estates,
including a sale of the Company and/or its assets in its entirety
or in a series of transactions. A hearing on the matter
is scheduled for October 3.
Today, the Company said that until the hearing on October 3 it
remains open to constructive discussions with the IBT.
The Company also said that it is continuing discussions with
prospective investors to secure the financial resources required to
successfully emerge from bankruptcy and implement its business
plan, but that all financing proposals the Company has received to
date require union alignment to the Company’s business
plan.
If union and financing arrangements are not achieved by October 3,
however, the Company will pursue Court approval of the extension
and focus efforts on alternative plans to maximize the value of the
bankruptcy estates.
About the Company
Interstate Bakeries Corporation is one of the nation’s
largest commercial bakers and distributors of fresh-baked bread and
sweet goods, sold under various brand names, including Wonder
®
, Merita ®
, Home Pride ®
, Baker’s Inn ®
, Hostess ®
, Drake’s ®
, and Dolly Madison ®
. The company is headquartered in Kansas City,
Missouri.
Interstate Bakeries Corporation filed for bankruptcy protection on
September 22, 2004, citing liquidity issues resulting from
declining sales, a high fixed-cost structure, excess industry
capacity, rising employee healthcare and pension costs, and higher
costs for ingredients and energy. The company continues
to operate its business in the ordinary course as a
debtor-in-possession.
Forward-Looking Statement
Some information contained in this press release may be
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are not
historical in nature and include statements that reflect, when
made, the Company’s views with respect to current events and
financial performance. These forward-looking statements can be
identified by forward-looking words such as “may,”
“will,”
“expect,” “intend,”
“anticipate,”
“believe,” “estimate,”
“plan,” “could,” “should” and
“continue” or similar words. These forward-looking
statements may also use different phrases. All such forward-looking
statements are and will be subject to
numerous risks and uncertainties, many of which are beyond our
control that could cause actual results to differ materially from
such statements. Factors
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