Interstate Bakeries Corp, the bankrupt maker of Wonder Bread and Twinkies snacks, said on Wednesday its lenders reduced the amount the company can borrow as it struggles to stay in business.
In a filing with the U.S. Securities and Exchange Commission, the Kansas City-based maker of bakery and sweet snack items, said an amendment made to its debtor-in-possession financing agreement with JPMorgan Chase Bank and other financial institutions cut the amount the company could borrow by $10 million.
The amount would be restored under some conditions, including a court-approved reorganization plan that provides for full repayment. The agreement with the lenders requires Interstate Bakeries to deliver by December 1, 2007, a revised plan detailing the company's strategy for maximizing the value of its assets, including the sale of the company or its assets.
The deal laid out in the SEC filing also allows the company to incur cash restructuring charges of up to $23 million in connection with consolidation of operations in Southern California.
Interstate Bakeries is one of the largest wholesale bakers and distributors of fresh baked bread and sweet goods in the United States. It employs about 25,000 people and the company and its affiliates operate 45 bakeries and approximately 630 distribution centers at various locations around the country.
The company filed for bankruptcy protection in September 2004.
(Reporting by Carey Gillam, editing by Gerald E. McCormick)