Twinkies maker says bid deficient
From Times Wire Services
Interstate Bakeries Corp., maker of Twinkies snack cakes, said a reorganization proposal from Yucaipa Cos. and the Teamsters union did not constitute a qualifying bid for the company under terms set in Bankruptcy Court.
The Kansas City, Mo.-based company said it would continue discussions with the Teamsters and Yucaipa, which submitted a “possible plan of reorganization” Thursday that offered to provide creditors with $580 million. Yucaipa is controlled by Los Angeles billionaire Ron Burkle.
The proposal, according to Interstate, “is silent on a number of critical issues.” For instance, it does not include a business plan and does not specify how much would be distributed to unsecured creditors.
