Milling & Baking News - December 5, 2006 - 11

B U S I N E S S

Interstate Bakeries asks Delaware
court to delay legal action
Continued from Page 1
the court to compel I.B.C. to immediately hold an annual shareholders' meeting
and allow them to nominate new directors for the company's board with advance notification.
Brencourt said Alvarez & Marsal's
performance as interim management of
I.B.C. has been "unsatisfactory," with the
"root cause of I.B.C.'s decline" its board
of directors.
In its Nov. 16 letter to the Delaware
court, I.B.C. described its situation as not
a typical case, given its filing for bankruptcy protection.
"Under both Delaware and federal
law, the decision as to who should manage the business and affairs of the company is ultimately the decision of the
bankruptcy court overseeing the company's Chapter 11 reorganization, not the
stockholders," I.B.C. said.
I.B.C. said it is currently in active
discussions with the three main constituencies in the bankruptcy case - the
secured lenders, the Official Committee

of Unsecured Creditors, and the Official
Equity Committee (of which Brencourt
Advisors is a member) - regarding the
makeup of the board.
If an agreement on the board's membership is reached by these parties, I.B.C.
said it would make a joint motion to the
United States Bankruptcy Court for the
Western District of Missouri for an order
reconstituting the board in accordance
with the parties' agreement. If no agreement is reached, I.B.C. said it intends
to file a motion in the bankruptcy court
asking that court to constitute or reconstitute the board and to enjoin further
prosecution of this action by Brencourt.
I.B.C. filed that motion Nov. 29, the
last date motions could be filed in order
to be heard on Dec. 19.
"A majority of Interstate Bakeries' directors are concerned about plaintiff's efforts to cause an immediate and wholesale
turnover of the board because the company is at a crucial stage in its longstanding reorganization efforts and changing
control of the board would endanger

ADM to increase North American
oilseed crushing operations
DECATUR, ILL. - Archer Daniels Midland Co. will increase its North American oilseed crushing capacity through
expansion at oilseed crushing plants
in the U.S. and Canada. Five soybean
crushing plants will be expanded in
Quincy, Ill.; Frankfort, Ind.; Mexico,
Mo.; Fremont, Neb.; and Des Moines,
Iowa. Two canola crushing plants also

will be expanded in Velva, N.D., and
Lloydminster, Alberta, Canada.
The expansions will support ADM's
two North American biodiesel facilities
in Mexico, Mo., and Velva.
ADM said the expansion was prompted by the need to serve a growing population requiring more and more food
and the rise in global wealth, which has

George Weston Bakeries launches
Wonder+ Square Bagels
TORONTO - George Weston Bakeries
has introduced Wonder+ Square Bagels
- Wonder Bread's first bagel brand and
Canada's first commercially-produced
square bagel. The move marks the second new product introduction from
Wonder this year, with the first being the
launch of Wonder+.
Available in two varieties - one made
from enriched wheat flour and the other
from 100% whole wheat flour - Wonder+ Square Bagels provide the taste,
look and texture of white bagels with the
nutritional benefits of whole wheat or
whole grains, Weston said.
Wonder+ Square Bagels are smaller
12 / Milling & Baking News, December 5, 2006

those efforts," I.B.C. said. "In addition,
a change of control through stockholder
action would cause a default under the
company's debtor-in-possession credit
agreement and increase the likelihood
that the company will not be able to file
its outstanding financial reports in time to
stop the S.E.C. from de-registering Interstate Bakeries' common stock."
Regardless of its bankruptcy issues,
I.B.C. said any trial on the matter should
not be held until early January as the
company "is in the midst of several critical tasks that must be completed for a successful reorganization of the company."
In its closing comments, I.B.C. said,
"Interstate Bakeries submits that comity,
fairness and efficiency will be served
by waiting until after the Dec. 19, 2006,
hearing date in the bankruptcy court before setting a trial date in this action. By
that time, both sides will be in a better
position to understand whether this case
is worth pursuing.
"Indeed, rushing to hold a stockholders'
election before the bankruptcy court has
had an opportunity to act is pointless because that court could immediately undo
the outcome of the election by reconstituting the board or appointing a trustee." MBN

changed protein and oil consumption.
Increased global energy needs and energy security concerns have also promoted
biodiesel demand.
"Expanding our crush capacity will
enable us to meet the increased demands
for vegetable oil and oilseed proteins,
driven by the world's growing need for
energy and food," said Scott Fredericksen, president of North American Oilseed Processing.
The expansions are scheduled to be
completed in mid-2008. MBN

duced a bagel bread in the United States
under its Thomas' brand. MBN

than conventional bagels at 3 oz (85
grams) per serving compared with the
average 4-oz (112 gram) bagel, and contain 4 grams of fiber compared with the
3 grams of fiber found in conventional
white bagels.
In addition to their smaller size, the
bagels have a dimple on the top half
only, which Weston said means "condiments won't ooze out the bottom, creating sticky messes - and they fit perfectly in a toaster."
Wonder+ Square Bagels are sold six
per re-sealable zipper bag for a suggested retail price of $2.69.
In February, George Weston introbakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 5, 2006

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