Milling & Baking News - May 20, 2008 - 10

Business

I.B.C. closes on credit agreement
KANSAS CITY - Interstate Bakeries Corp. announced May 9 it has
closed on an amended and restated
debtor-in-possession (DIP) revolving credit agreement to replace its
former DIP credit agreement that
was set to expire on June 2. The maturity date of the new agreement
has been extended to Sept. 30 and
the amount available for borrowing
under the agreement has been in-

creased to $249.7 million from $200
million, I.B.C. said.
I.B.C. received Bankruptcy Court
approval on April 29 to enter into
the amended and restated DIP
credit agreement with certain of the
its existing lenders, as well as new
lenders and JPMorgan Chase Bank,
N.A., administrative agent and collateral agent for the lenders.
"We are very appreciative of the

DuPont, Genencor to create
cellulosic ethanol j.v.
liday, chairman and chief executive
officer of DuPont. "This joint venture
addresses this issue head on."
The parent companies will license
their combined intellectual property
and patents related to cellulosic ethanol. They seek to lower the system
cost to produce a gallon of ethanol
from cellulosic materials by optimizing the process
steps into a single
technology
solution.
The joint venture is designed
to scale up the
optimized technology package
for corn cobs by
integrating
the
proprietary DuPont
pretreatment and ethanologen
technologies with the
DuPont scientist Paul Vitennan develops biocatalysts for the Du- enzyme technology of Genencor.
Pont Danisco Cellulosic Ethanol joint venture.
Continued from Page 1

DUPONT

billion gallons. The joint venture has
a target of creating cellulosic ethanol
from corn cobs at a cost of $50 per
ton.
"With food and gas prices surging at double-digit rates, there is an
imperative for sustainable biofuels
technologies," said Charles O. Hol-

Grupo Bimbo to acquire Brazilian bread company
MEXICO CITY - Grupo Bimbo, S.A.B.
de C.V. has reached agreement to acquire a 75% stake in Nutrella Alimentos, S.A., a Brazilian bread company.
Financial details were not disclosed.
Founded in 1972, Nutrella produces
and sells packaged bread, buns and
pastries through two production facilities in Sao Paulo and Rio Grande
do Sul. Through such brands as Nutrella, Nhamy and Nutrellinhas, Nutrella is the largest baking company
in the southern region of Brazil with
2007 sales of 150,300,000 Brazilian reals ($88,960,000) and an EBITDA of
21,000,000 Brazilian reals.
"This transaction aligns with Grupo
bakingbusiness.com / world-grain.com

Bimbo's strategy to consolidate its
operations in the countries where it
participates and provides the company with a more solid position to continue developing a profitable business in Brazil, by complementing its
current operations in that country,"
Grupo Bimbo said. "It also provides
access to one of the regions with the
greatest economic activity with over
25 million inhabitants."
The acquisition of Nutrella would
come a little more than seven years
after Grupo Bimbo entered Brazil
with the March 2001 purchase of
Plus Vita S.A. from Bunge Ltd. for
$63,500,000. MBN

support our lenders have continued
to demonstrate," said Craig Jung,
chief executive officer. "With our
new DIP facility in place I.B.C. now
has sufficient time and liquidity to
support normal business operations
while we continue discussions with
multiple parties to achieve a confirmable, stand-alone plan of reorganization, and at the same time,
continue to conduct a parallel process to sell the company's business
and assets." MBN
DuPont will continue to analyze the
collection and storage of cellulosic
feedstocks.
"This joint venture will be a powerhouse of discovery, development
and engineering," said Tom Knutzen,
c.e.o. of Copenhagen-based Danisco.
"It represents a major step forward
in Danisco's new strategic intent to
be a leading force in the field of industrial biotechnology."
Since 2000, the U.S. Department
of Energy has supported the efforts
of DuPont and Genencor through
grants totaling more than $60 million
for the development of pretreatment
processes, ethanol conversion organisms and improved enzymes.
For more on DuPont Danisco
Cellulosic Ethanol, L.L.C., visit
www.dupontdanisco.com. MBN

New credit agreement
for MGP Ingredients
ATCHISON, KAS. - MGP Ingredients, Inc. on May 5 entered into a new
secured credit agreement for accounts
receivable and inventory.
The agreement, with Commerce
Bank, BMO Capital Markets Financing,
Inc. and National City Bank, replaces
a $30 million line of credit agreement
with Commerce and provides for a $40
million, three-year revolving credit facility and a $25 million, five-year term
loan facility.
The pact contains "accordion" features that give lenders the option to
offer a one-time increase in the revolving credit commitment of up to $20
million and a one-time term loan increase of up to $10 million.
MGPI may borrow against the term
loan facility until May 4, 2009, with
principal payments commencing
shortly thereafter and concluding in
May 2013. The outstanding balance
of the revolving credit loans is due in
May 2011. MBN
Milling & Baking News

May 20, 2008 / 11

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

Milling & Baking News - May 20, 2008

Table of Contents for the Digital Edition of Milling & Baking News - May 20, 2008