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Interstate Bakeries CEO Cleared

Chairman Mike Anderson is 'gratified.'

Interstate Bakeries (IBCIQ) said the U.S. Bankruptcy Court approved the Twinkies baker's appointment of Craig Jung as CEO.

The court also approved a motion to extend the maturity date of Interstate's post-petition debtor-in-possession financing facility to Feb. 9, 2008, from June 2, 2007. Interstate filed for Chapter 11 bankruptcy protection back in September 2004.

"We are gratified with the court's decisions today," said Chairman Mike Anderson. "Craig has deep consumer goods and direct-store-delivery experience and a proven track record leading difficult performance turnarounds. He is the right person to lead this company forward."

Jung, 53, succeeds turnaround specialist Tony Alvarez II, who had served as interim CEO since the bankruptcy filing.

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Jung said he plans to fix the company's cost structure, accelerate innovation, drive productivity and create a performance culture.

"Despite the progress of the past two years, our cost structure has not been aligned to our revenue or today's reality of higher commodity prices and intense competition," he said. "As a result, the company is still unprofitable and in Chapter 11. That has to change."