8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): September 9, 2008
INTERSTATE BAKERIES CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
1-11165	43-1470322
(Commission File Number)	(IRS Employer Identification No.)
12 East Armour Boulevard
Kansas City, Missouri	64111
(Address of Principal Executive Offices)	(Zip Code)
(816) 502-4000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01.                                Regulation FD Disclosure.

As previously reported, on September 22, 2004, Interstate Bakeries Corporation (the “Company”) and each of its wholly-owned subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code (the “Bankruptcy Code”). The filings were made in the United States Bankruptcy Court for the Western District of Missouri (the “Court”). On September 9, 2008, the Company filed with the Court as required by the Bankruptcy Code a consolidated monthly operating report for the four week period ended July 26, 2008 (the “MOR”).

The Company is required to file the MOR with the Bankruptcy Court and the U.S. Trustee pursuant to requirements under Local Rule 2015-2 C. The MOR should be read in conjunction with the Company’s third quarter fiscal 2008 Form 10-Q that was filed with the Securities and Exchange Commission (“SEC”) on April 17, 2008, and the Company’s Annual Report on Form 10-K for fiscal 2007 that was filed with the SEC on August 16, 2007.

The MOR is not audited and will not be subject to audit or review by the Company’s external auditors on a stand-alone basis at any time in the future. The MOR does not include quarterly and year-to-date adjustments reflected upon review of major asset and liability accounts prior to the Company’s filing of its quarterly and annual financial statements with the SEC. Due to the timing impact of the foregoing, results for this period as presented in the MOR are not necessarily indicative of the actual results for the period if all such matters were allocated to all periods in the quarter or year. Accordingly, the period reported in the MOR should not be viewed on a stand-alone basis, but rather in the context of previously reported financial results, including the Company’s SEC filings.

The information contained in the MOR is subject to additional qualifications and limitations as described in the Explanatory Notes to the MOR and readers are advised to read and consider such qualifications and limitations carefully. Accordingly, the Company cautions readers not to place undue reliance upon the information contained in the MOR. Readers are also cautioned to refer to the risk factors contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 2, 2007, as supplemented by the Company’s first quarter fiscal 2008 Form 10-Q and third quarter fiscal 2008 Form 10-Q, which address risks that could adversely affect our financial condition, results of operations and cash flows. For these reasons, the financial information contained in the report furnished today is not indicative of the Company’s financial condition or operating results on a basis consistent with generally accepted accounting principles in the United States.

As reflected in the MOR, the Company reported net sales of $218.9 million for the four week period ended July 26, 2008. The Company’s net loss for the four week period ended July 26, 2008 was $11.3 million.

The Company reported cash of $20.9 million as of July 26, 2008. As of July 26, 2008 the Company had borrowed $80.2 million under its $239.3 million debtor-in-possession credit facility, which is subject to a borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves. The

credit facility was also utilized to support the issuance of letters of credit primarily in support of the Company’s insurance programs. As of July 26, 2008, there were $136.6 million of letters of credit outstanding under the debtor-in-possession credit facility, which were partially collateralized by $21.1 million of restricted cash as shown on the MOR. The amount of the credit facility available for borrowing was $22.5 million as of July 26, 2008. In addition to the borrowing base formula, each borrowing under the debtor-in-possession credit facility is subject to its terms and conditions, including the absence of an event of default thereunder.

The foregoing description of the MOR is not intended to be complete and is qualified in its entirety by reference to the MOR attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this Current Report on Form 8-K under the heading Item 7.01, “Regulation FD Disclosure,” including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference to such filing.

Cautionary Statement Regarding Forward-Looking Statements and Other Matters

Some information contained in this Current Report on Form 8-K may be forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are not historical in nature and include statements that reflect, when made, the Company’s views with respect to current events and financial performance. These forward-looking statements can be identified by forward-looking words such as “may,” “will,” “expect,” “intend,” “anticipate,” “believe,” “estimate,” “plan,” “could,” “should” and “continue” or similar words. These forward-looking statements may also use different phrases. All such forward-looking statements are and will be subject to numerous risks and uncertainties, many of which are beyond our control that could cause actual results to differ materially from such statements. Factors that could cause actual results to differ materially include, without limitation: the ability of the Company to continue as a going concern; the evaluation of various alternatives, including, but not limited to, the sale of some or all of its assets, infusion of capital, debt restructuring, amending the plan of reorganization previously filed with the Bankruptcy Court, filing a new plan of reorganization, or any combination of these options; the Company’s ability to negotiate an extension of and increase in the amount available under our debtor-in-possession credit facility or refinance our debtor-in-possession credit facility; the Company’s ability to obtain the financing necessary to emerge from Chapter 11; the terms of any reorganization plan ultimately confirmed; the Company’s ability to implement its business plan developed as a basis for one or more plans of reorganization; the ability of the Company to operate pursuant to the covenants, terms and certifications of its DIP financing facility, as amended and restated; the ability of the Company to obtain court approval with respect to motions in the Chapter 11 proceeding filed by it from time to time; the ability to develop, propose, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceeding; risks associated with third parties seeking and obtaining court approval for the appointment of a Chapter 11 trustee or to convert the Chapter 11 proceeding to a Chapter 7 proceeding; risks associated with cost increases in materials, ingredients, energy

and employee wages and benefits; the Company’s ability to obtain concessions from its unionized workforce to reduce costs and allow for greater flexibility in the method and manner of distributing its products; risks associated with the Company’s restructuring activities, including the risks associated with achieving the desired savings; the Company’s ability to successfully reject unfavorable contracts and leases; the duration of the Chapter 11 process; the ability of the Company to obtain and maintain adequate terms with vendors and service providers; the potential adverse impact of the Chapter 11 proceeding on the Company’s liquidity or results of operations; the Company’s ability to operate its business under the restrictions imposed by the Chapter 11 process; the instructions, orders and decisions of the bankruptcy court and other effects of legal and administrative proceedings, settlements, investigations and claims; the significant time that will be required by management to implement a plan of reorganization, as well as to evaluate the Company’s various alternatives discussed above; risks associated with product price increases, including the risk that such actions will not effectively offset inflationary cost pressures and may adversely impact sales of the Company’s products; the effectiveness of the Company’s efforts to hedge its exposure to price increases with respect to various ingredients and energy; the ability of the Company to attract, motivate and/or retain key executives and employees; changes in our relationship with employees and the unions that represent them; successful implementation of information technology improvements; increased costs and uncertainties with respect to a defined benefit pension plan to which we contribute; costs associated with increased contributions to single employer, multiple employer or multi-employer pension plans; the impact of any withdrawal liability arising under the Company’s multi-employer pension plans as a result of prior actions or current consolidations; the effectiveness and adequacy of our information and data systems; changes in general economic and business conditions (including in the bread and sweet goods markets); changes in consumer tastes or eating habits; acceptance of new product offerings by consumers and the Company’s ability to expand existing brands; the performance of the Company’s recent and planned new product introductions, including the success of such new products in achieving and retaining market share; the effectiveness of advertising and marketing spending; any inability to protect and maintain the value of the Company’s intellectual property; future product recalls or food safety concerns; actions of competitors, including pricing policy and promotional spending; bankruptcy filings by customers; costs associated with environmental compliance and remediation; actions of governmental entities, including regulatory requirements; the outcome of legal proceedings to which we are or may become a party; business disruption from terrorist acts, our nation’s response to such acts and acts of war; and other factors.  These statements speak only as of the date of this Current Report on Form 8-K, and we disclaim any intention or obligation to update or revise any forward-looking statements to reflect new information, future events or developments or otherwise, except as required by law. We have provided additional information in our filings with the SEC, which readers are encouraged to review, concerning other factors that could cause actual results to differ materially from those indicated in the forward-looking statements.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company’s various pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the Chapter 11 proceeding to each of these liabilities and/or securities. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

Item 9.01      Financial Statements and Exhibits.

(d)           Exhibits

Exhibit No.	Description
99.1	Interstate Bakeries Corporation Consolidated Monthly Operating Report for the four week period ended July 26, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: September 9, 2008	INTERSTATE BAKERIES
	CORPORATION
	By:	/s/ J. Randall Vance
		J. Randall Vance
		Senior Vice President, Chief
		Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Interstate Bakeries Corporation Consolidated Monthly Operating Report for the four week period ended July 26, 2008

EX-99.1

Exhibit 99.1

Case Name: Interstate Bakeries Corporation & All Subsidiaries	Case No: 04-45814-jwv-11
Consolidated Monthly Operating Report Summary For The Four Weeks Ended and as of July 26, 2008
REVENUE
Gross Income					$	218,883,863
Less Cost of Goods Sold						114,801,472
Ingredients, Packaging & Outside Purchasing		$	67,173,632
Direct & Indirect Labor			35,966,455
Overhead & Production Administration			11,661,385
Gross Profit						104,082,391
OPERATING EXPENSES
Owner - Draws/Salaries			-
Selling & Delivery Employee Salaries			47,924,023
Advertising and Marketing			2,146,558
Insurance (Property, Casualty, & Medical)			11,812,078
Payroll Taxes			4,273,703
Lease and Rent			2,834,861
Telephone and Utilities			1,094,829
Corporate Expense (Including Salaries)			7,070,800
Other Expenses			30,764,466	(i)
Total Operating Expenses						107,921,318
EBITDA						(3,838,927	)
Restructuring & Reorganization Charges		(1,820,581)		(ii)
Depreciation and Amortization			4,646,988
Abandonment			167,758
Property & Equipment Impairment			-
Other( Income)/Expense			2,787
Gain/Loss Sale of Prop			-
Interest Expense			4,515,662
Operating Income (Loss)						(11,351,541	)
Income Tax Expense (Benefit)			(26,819	)
Net Income (Loss)					$	(11,324,722	)
CURRENT ASSETS
Accounts Receivable at end of period					$	133,967,183
Increase (Decrease) in Accounts Receivable for period						77,728
Inventory at end of period						61,138,867
Increase (Decrease) in Inventory for period						(3,374,334	)
Cash at end of period						20,983,417
Increase (Decrease) in Cash for period						884,252
Restricted Cash					21,064,873		(iii)
Increase (Decrease) in Restricted Cash for period						13,052
LIABILITIES
Increase (Decrease) Liabilities Not Subject to Compromise						4,417,153
Increase (Decrease) Liabilities Subject to Compromise						(1,544	)
Taxes payable:
Federal Payroll Taxes		$	4,170,082
State/Local Payroll Taxes			1,146,128
State Sales Taxes			857,559
Real Estate and Personal Property Taxes			7,751,391
Other (see attached supplemental schedule)			2,961,481
Total Taxes Payable						16,886,641
See attached supplemental schedule for footnoted information.

IBC
Other Taxes Payable - Supplemental Schedule
for period ended
July 26, 2008
Description	Amount
Use Tax	$	564,582
Accr. Franchise Tax		564,088
Other Taxes		1,832,811
Total Other Taxes Payable	$	2,961,481
	2nd period
(i)  Other Expenses included the following items:
Employee benefit costs		12,722,154
Facility costs (excluding lease expense)		904,280
Distribution/transportation costs		13,964,831
Local promotional costs		1,156,920
Miscellaneous		2,016,281
	$	30,764,466
(ii)  Restructuring and reorganization expenses for the period included:
Restructuring expenses
(Gain)/loss on sale of assets		(3,350,487	)
Other		87,956
Reorganization expenses
Professional fees		1,529,042
Interest expense		(12,892	)
(Gain)/loss on sale of assets		(74,200	)
Other		0
	$	(1,820,581	)
(iii) Restricted cash represents cash held as collateral pursuant to IBC's debtor-in-possession credit facility.
Note: Capital expenditures for the period totaled approximately $1.9 million.

EXPLANATORY NOTES TO THE INTERSTATE BAKERIES CORPORATION

CONSOLIDATED MONTHLY OPERATING REPORT

DATED AS OF JULY 26, 2008

1.   This consolidated Monthly Operating Report (MOR), reflecting results for the four-week period ended July 26, 2008 and balances of and period changes in certain of the Company’s accounts as of July 26, 2008, is preliminary, unaudited, and subject to adjustment prior to the filing of the Company’s fiscal 2009 First Quarterly Report on Form 10-Q with the Securities and Exchange Commission (SEC). This MOR should be read together and concurrently with the Company’s third quarter 2008 Form 10-Q that was filed with the Securities and Exchange Commission on April 17, 2008 and the Company’s Annual Report on Form 10-K for fiscal 2007 filed with the SEC on August 16, 2007 for a comprehensive description of our current financial condition and operating results. This MOR is being provided to the Bankruptcy Court and the U.S. Trustee pursuant to requirements under Local Rule 2015-2 C.

2.   This MOR is not audited and will not be subject to audit or review by our external auditors on a stand-alone basis at any time in the future.  This MOR does not include  quarterly and year-to-date adjustments reflected upon review of major asset and liability accounts prior to the Company’s filing of its quarterly and annual financial statements with the SEC.

Due to the timing impact of the foregoing, results for this period as presented in the MOR are not necessarily indicative of the actual results for the period if all such matters were allocated to all periods in the quarter or year.  Accordingly, each period reported in the MORs should not be viewed on a stand-alone basis, but rather in the context of previously reported financial results, including the Company’s SEC filings.

3.   This MOR is presented in a format providing information required under local rule and incorporating measurements used for internal operating purposes, rather than in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. This MOR does not include certain financial statements and explanatory footnotes, including disclosures required under GAAP.

4.   As of July 26, 2008 the Company had borrowed $80.2 million under its $239.3 million debtor-in-possession credit facility, which is subject to a borrowing base formula based on its level of eligible accounts receivable, inventory, certain real property and reserves.  The credit facility was also utilized to support the issuance of letters of credit primarily in support of the Company’s insurance programs.  As of July 26, 2008 there were $136.6 million of letters of credit outstanding under the debtor-in-possession credit facility. The amount of the credit facility available for borrowing was $22.5 million as of July 26, 2008.  In addition to the borrowing base formula, each borrowing under the debtor-in-possession credit facility is subject to its terms and conditions, including the absence of an event of default thereunder.  (See Note 8 to the Company’s financial statements included in its Form 10-Q for the third fiscal quarter of 2008 ended March 8, 2008 for additional information.)

5.   In connection with completing the fiscal 2008 audited financial statements, we are reviewing the classification of the approximately $450 million owing the pre-petition senior secured lenders (the “Pre-petition Secured Debt Claims”) at May 31, 2008 and all subsequent periods to determine whether these claims should be included in liabilities subject to compromise in accordance with American Institute of Certified Public Accountants’ Statement of Position 90-7 due to uncertainties regarding impairment of these claims.  The Pre-petition Secured Debt Claims and related changes to amounts owed have previously been included as liabilities not subject to compromise in prior Monthly Operating Reports as filed.