Billionaire Burkle Bids on Bakeries

Yucaipa Cos., the private equity firm controlled by billionaire investor Ron Burkle, and the Teamsters union have submitted a bid to bring Interstate Bakeries Corp. (Nasdaq: IBCIQ) out of bankruptcy. The Associated Press reported that the deal values the Twinkie maker at $580 million. Absent from the deal, first proposed in November, is Mexican bakery giant Grupo Bimbo, which has said it “currently is not in a position to submit a bid for the purchase of Interstate Bakeries.” Interstate Bakeries is slated to conduct an auction Jan. 22 to select an investor to fund its exit from bankruptcy. Investors interested in buying the company or financing its exit from Chapter 11 have to beat an offer from Silver Point Finance, which has agreed to lend Interstate Bakeries $400 million. Separately, Reuters reported that Interstate Bakeries said the proposal from Yucaipa Cos LLC and the Teamsters union did not constitute a qualifying bid for the company under terms set in bankruptcy court.