Interstate Bakeries Files for Chapter 11

Interstate Bakeries Corp. (NYSE:IBC), which earlier this year disclosed a reserve shortfall of $40 million in its workers' compensation self-insurance program, primarily due to California exposures, said yesterday that, in order to provide it with the necessary time to complete an operational and financial restructuring, it and its operating subsidiaries have filed cases under Chapter 11 of the Bankruptcy Code.The reserve charge caused the company to conduct an audit, which discovered the issue related to otherwise unidentified issues in the company's fiscal second quarter, which ended Novembe...