January 8, 2008: A similar bankruptcy case may give Interstate Bakeries Corp. some ammunition against private investment fund Yucaipa Cos. LLC as the union-friendly investor tries to firm up an offer for bankrupt IBC.
So far, the Kansas City Twinkie-maker's attempts to learn details of Yucaipa's plan and of its exclusive relationship with one of IBC's largest unions, the International Brotherhood of Teamsters, have been denied. That relationship seemingly has tied IBC's hands because its proposed Chapter 11 emergence financing requires union agreements. It also has discouraged other suitors, the company has said.
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