Updated from 11:53 a.m. EDT
Interstate Bakeries (IBC) plunged 37% Wednesday after the Twinkie maker filed for Chapter 11 bankruptcy protection.
Interstate received a $200 million debtor-in-possession financing commitment from J.P. Morgan Chase. Interstate will use the DIP financing to fund operating expenses as well as for supplier and employee obligations. Interstate will continue to operate its bakeries and distribution centers while it works on its financial restructuring. The company also hired turnaround experts Tony Alvarez and John Suckow. Alvarez will serve as CEO, and Suckow will serve as chief restructuring officer. Interstate said that liquidity issues, a high fixed-cost structure, excess capacity, rising health care and pension expenses and high material and energy costs
Shares of World Airways (WLDA) rose 39% after the company raised its third-quarter operating income and sales forecasts. The cargo company now expects operating income of $11 million to $13 million, up from its previous forecast of $5 million to $7 million. Sales are now expected to be between $125 million and $130 million, up from its earlier forecast of $113 million to $123 million. World Airways said that recent military and commercial contract wins led to the revised outlook. Shares traded up $1.60 to $5.67.Corinthian Colleges (COCO - Get Report) rose 5.4% after the Education Department reinstated Bryman College to its advance system of funding. The school had been placed on the department's reimbursement system as a result of a program review examining the school's handling of Title IV program funds. Corinthian said the reimbursement system status had an immaterial financial impact on its financial results. Shares of Corinthian traded up 70 cents to $13.72. Shares of ConAgra Foods (CAG - Get Report) rose 0.6% after the company posted first-quarter numbers that beat expectations. Excluding items, the food company posted a profit of 28 cents a share on sales of $3.5 billion. Analysts polled by Thomson First Call were expecting earnings of 26 cents a share on sales of $3.39 billion. Strong volumes in several of the company's brands, including Armour, Blue Bonnet and Chef Boyardee, fueled the solid first-quarter sales. Shares traded up 15 cents to $25.96. Onyx Acceptance (ONYX) rose 67.2% after it agreed to be acquired by Capital One Financial (COF - Get Report) for $191 million. Onyx shareholders will receive $28 a share in cash in the deal. The transaction is expected to close during the first quarter of 2005. The acquisition will make Capital One the second-largest independent auto lender in the U.S. Shares of Onyx traded up $10.96 to $27.26.