Reuters – Brencourt Advisors LLC on Tuesday said it sued bankrupt Twinkies maker Interstate Bakeries in Delaware, seeking to force the company to hold an annual shareholders meeting, according to aregulatory filing.
Brencourt, a $1.8 billion hedge fund holding some 8.4 percent, or 3.8 million shares of Interstate, said it is concerned with the company’s “declining operating performance” as it restructures under Chapter 11 bankruptcy protection, according to a letter accompanying the suit.
The suit, filed in the Chancery Court of Delaware, seeks to compel the Kansas City, Missouri-based company to hold a shareholders’ meeting to elect new directors.
Brencourt said the company hasn’t held an annual meeting since September, 2003, in violation of Delaware law, where the company is incorporated.
“IBC’s current situation is the culmination of years of bad management and board neglect,” said Brencourt Chief Executive William Collins in a letter to Interstate. “IBC needs a new, capable board with the skills to properly oversee the company’s reorganization and operational turnaround.”
