By DAVID TWIDDY
Associated Press

KANSAS CITY, Mo. - Interstate Bakeries Corp., the maker of Hostess Twinkies and Wonder Bread, has submitted a revised reorganization plan that pays unsecured creditors about 30 percent of what they're owed and gives shareholders nothing.

Secured creditors and the company's lenders will receive the full value of their claims through the issuance of new stock, Interstate Bakeries said in Bankruptcy Court documents filed late Friday and disclosed in a securities filing Monday.

Kansas City-based Interstate Bakeries has been in bankruptcy since September 2004.

U.S. Bankruptcy Judge Jerry Venters is scheduled to consider the company's plan during a hearing Tuesday and decide whether to allow the company to begin seeking creditor approval.

The plan calls for specialist lender Silver Point Finance LLC to provide $400 million in post-bankruptcy funding. Including debt-to-equity swaps, the plan values the company at $580 million.

Once it exits bankruptcy, the company would issue 3.3 million shares of Class A stock, which would go to holders of secured claims, including $450 million owed to lenders.

An additional 50 million shares of Class B stock would be sold to help repay some of the $320 million owed to unsecured creditors. The company estimates that those creditors would receive an average of around 30 cents on the dollar for their claims.

Existing shares, which were worth about a nickel each in midday trading Monday, would be canceled.

The newest filing amends a preliminary reorganization plan Interstate Bakeries filed in November. More than a dozen parties have filed objections to that plan, largely because of missing information.

Even if the revised plan answers most of those concerns, the company still faces continued opposition from the committees representing current shareholders and unsecured creditors, who likely will push for their share to be higher.

A potential point of contention could be the company's own estimates that it would be worth between $572 million and $670 million after reorganization, possibly more than Silver Point's offer.

The company also has yet to resolve its differences with the International Brotherhood of Teamsters, which represents about 9,500 Interstate Bakeries workers and whose cooperation is required for the reorganization plan to move forward.

Talks between the union and the company broke off in October over proposed welfare concessions and a proposed revamping of the company's distribution system, which the union claims will cost its members jobs.

During a court hearing last year, a Teamsters attorney said the union would rather see the company be liquidated than agree to the changes.

The Teamsters have teamed up with Yucaipa Cos., a Los Angeles investment firm that submitted a bid to buy Interstate Bakeries in December. The bid was rejected as incomplete by company officials.

Because the exclusivity period for Interstate Bakeries' reorganization plan has passed, other parties - including Yucaipa and the Teamsters - could also file their own proposed plans and try to get approval from creditors.