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Judge Approves Twinkie Maker Restructuring Changes

Interstate Bakeries Corp. has received approval for changes to its reorganization plan that it said were necessary to exit more than four years of bankruptcy.

KANSAS CITY, Mo. (AP) -- Interstate Bakeries Corp. has received approval for changes to its reorganization plan that it said were necessary to exit more than four years of bankruptcy.

A bankruptcy judge approved the changes Thursday. They amend the terms of financing being provided by General Electric Capital Corp.

Under the new terms, GE Capital will lend the company up to $105 million, instead of $125 million, and charge higher interest rates. Other lenders have agreed to make up half of the $20 million reduction in financing.

Interstate Bakeries' lead bankruptcy attorney, Eric Ivester, said both sides continue to work on closing the financing, which he said could happen "soon."

The Kansas City-based maker of Wonder Bread and Hostess Twinkies has until Feb. 9 to exit bankruptcy or lose its financing.

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