Twinkie maker cleared to exit bankruptcy

U.S. Bankruptcy Judge Jerry Venters on Friday approved the reorganization plan for Interstate Bakeries Corp.

The plan provides $464 million in new loans while New York-based Ripplewood Holdings will invest an additional $130 million. Unsecured creditors and shareholders will receive nothing under the plan.

The Kansas City-based company filed for Chapter 11 bankruptcy protection in September 2004, pressured by falling sales and high fixed operational costs.

Interstate Bakeries plans to exit bankruptcy by Dec. 15, pending the completion of its post-bankruptcy financing.