Tastykake Gets Breathing Room From Lenders

PHILADELPHIA (CBS) -- There are new developments surrounding the financial troubles plaguing the Tasty Baking Company, the maker of Tastykakes.

The company got some breathing room from lenders who agreed to defer until June 30, 2011 all principal payments and credit facility reductions.

The company President and CEO, Charlie Pizzi, said in a statement:

"Since our announcement last week, we have heard from countless fans, supporters and friends of the iconic Tastykake brand. We could not be more grateful and appreciative of their dedication and encouragement."

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Nichole Thorson is one of those fans. She created a Facebook page and named it "Operation Save Tastykake."

"I figured I'd go through a few friends and family," Thorson said.

Before she knew it, their family and friends, thousands of them, answered Thorson's plea to make January 14, 2011, "Buy a Tastykake" Day.

Thorson said, "I have people from Wisconsin, Tennessee, Texas and Georgia, just saying they don't have them there and they'll order it online. It's just amazing how many people want to help."

People who were all willing to help keep the maker of Tastykakes stay alive. In a financial pinch, the company had fallen behind on its loan payments and it was considering a merger with another company or even a complete sale of the company.

And Friday afternoon, Tastykake fans got some good news. The company was able to buy itself more time to get its financing in order.

Pizzi's statement went onto explain that the company was able to reach an agreement for new public and private debt financing worth millions of dollars.

Pizzi added, "We are pleased that we have secured this new financing and the amendments. We believe that the new funds will enable the Company to manage cash flow and deal with its tight liquidity situation as the Company continues its evaluation of possible financial and strategic alternatives which, in addition to a possible sale or merger of the Company, include the possibility of refinancing the Company's long term debt or raising additional capital. As we pursue our options, we remain focused on operational efficiencies, growing the business and continuing to produce, distribute and sell Tastykake products to our customers and consumers." (see previous story).

Reported by Elizabeth Hur, CBS 3