Interstate Bakeries Reaches Settlement With Pension Plan

Law360, New York (October 24, 2006, 12:00 AM EDT) -- Interstate Bakeries Corp. has reached a deal with one of its pension plans that will save the bankrupt snack cake maker $17.9 million.

The company has agreed to pay the Central States Southeast and Southwest Area’s Pension Fund, which covers 3,400 of its workers, $1.1 million to resolve the fund’s $16 million claim against the baker.

In return, the fund will allow Interstate to skip its required contributions for the next three years.

Interstate initiated settlement talks out of a need to stem the rising costs...
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