Washington, Aug. 20 - Representatives from the Teamsters Union worked through the night to successfully negotiate a deal between investor Ripplewood Holdings and creditors to save Interstate Bakeries Corporation (IBC) from liquidation and protect Teamster jobs.
"This deal is important in IBC's recovery from bankruptcy as we work to protect our members' jobs," said Teamsters General President Jim Hoffa.
"The Teamsters Union worked very hard to secure a workable plan to create a healthier company and secure good jobs for our members - the true heart and soul of IBC."
"After what looked like a drop off in negotiations, I'm pleased to announce that we were able to broker a settlement very late last night," said Richard Volpe, Director of the Teamsters Bakery Workers Conference. "Our priority from the beginning was to help IBC find a plan that would preserve the best chance for the company's long-term viability."
Under the proposed settlement between the banks, Ripplewood Holdings and the Teamsters, IBC will be able to emerge as a stand-alone company after four years of bankruptcy.
"This settlement was not without sacrifices from all parties involved," Volpe said. "But it will place the company on the best footing possible for its future success, and keep as many hardworking union men and women employed as possible."
Details of the plan will be forthcoming in the next several weeks.