Judge Sides Against U.S. Bank In Claim Against Insurers Of Interstate Bakeries

A federal judge has dismissed a $56 million claim against the insurers of Interstate Bakeries Corp. related to its bankruptcy.

U.S. District Judge Howard Sachs denied U.S. Bank’s claim that it was entitled to the money as part of a settlement with a former Interstate executive. U.S. Bank served as the trustee of the unsecured creditors committee in the Interstate bankruptcy.

After more than four years in bankruptcy, Interstate reorganized in early 2009 and moved its headquarters from Kansas City to Dallas. The maker of brands such as Wonder Bread and Twinkies continues to have operations in Kansas City.

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