Twinkie-maker still in bankruptcy limbo

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January 12, 2009 06:01 PM EST | AP


KANSAS CITY, Mo. — Interstate Bakeries Corp. has not nailed down financing necessary for the company to exit bankruptcy more than a month after getting a judge's approval.

The Kansas City-based maker of Hostess Twinkies and Wonder Bread said Monday that it's still negotiating with lenders. It also said it couldn't be sure that it would get the deal done.

Agreements providing the almost $600 million in post-bankruptcy financing expire Feb. 9.

A spokesman for the company said that if it can't reach a deal by then and can't get its lenders to extend the deadline, it would likely have to begin liquidating its assets.

Interstate Bakeries has been under Chapter 11 protection from creditors for more than four years.