Botched Exit Deal To Cost Interstate $5M

Law360, New York (March 14, 2008, 12:00 AM EDT) -- With Interstate Bakeries Corp.'s exit financing agreement due to expire, the bakery giant, best known for Wonder Bread and Twinkies, is preparing to assume a $5.3 million charge in relation to the broken deal.

Interstate disclosed Thursday in a filing with the U.S. Securities and Exchange Commission that it will almost certainly be forced to break its agreement with Silver Point Finance LLC after failing to meet the conditions associated with the $400 million pledge.

The agreement hinged on Interstate confirming its reorganization plan by Friday....
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