KANSAS CITY, Mo. (AP) -- Interstate Bakeries Corp. can begin seeking creditor approval of a plan that would allow the company to exit bankruptcy.
A bankruptcy judge on Thursday approved a disclosure statement describing the plan, putting the maker of Hostess Twinkies and Wonder Bread in the last stages of emerging from court protection.
The plan gives secured creditors a stake in the reorganized company but cancels existing stockholders equity and provides unsecured creditors with virtually nothing. The Kansas City-based company will also be taken private.
Creditors will have until a Dec. 5 confirmation hearing to vote on the plan. Assuming the plan passes, company attorneys said Interstate Bakeries would emerge from bankruptcy by Dec. 15.