KANSAS CITY, Mo. (AP) – Interstate Bakeries Corp., maker of Hostess Twinkies and Wonder Bread, said Monday it has been unable to reach an agreement with the Teamsters union after reaching an agreement with its other major union.

The Kansas City-based company, which has been operating under bankrupcty protection for about three years, has until Friday to file its own reorganization plan with the court.

If Interstate Bakeries doesn’t meet that deadline, other parties, including its lenders and creditors, can propose reorganization plans. Interstate’s holdings include the J.J. Nissen bakery in Biddeford, Maine.

The company said Friday the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union had begun having its members vote to ratify negotiated contract changes, which included health and welfare concessions and changes to the company’s distribution network.

The company said previously that it had a self-imposed Sunday deadline to reach new agreements with its union workers or it said it would ask the court for a 30-day extension to consider it options, including possible liquidation.

IBC said Monday the company remained open to discussions with the International Brotherhood of Teamsters leading up to the hearing.

If it can work out agreements, it plans to ask the court on Wednesday to extend the deadline for its reorganization plan to Jan. 15.

The company has been unable to negotiate agreed changes with the International Brotherhood of Teamsters, which represents around 10,000 employees.

The union objects to additional health care concessions, as well as the company’s plan to separate the job functions of many drivers who currently sell and deliver the company’s products.

The union says the distribution changes would reduce the pay for many of its members, but Interstate Bakeries said the effect would be smaller than the union is claiming.

The Teamsters earlier this week asked the bankruptcy court to deny Interstate Bakeries’ request for more time, saying three years has been more than enough to work out a plan.

JP Morgan Chase Bank, which represents the company’s pre-bankruptcy lenders, made a similar request this week, saying the deadline should be pushed back no further than Oct. 31.

A committee of unsecured creditors has also filed motions, seeking to force Interstate Bakeries to talk with potential buyers and allow creditors to be part of those negotiations.

AP-ES-10-01-07 1343EDT