Twinkie-Maker Hostess Says Wind-Down Proceeding as Planned

Friday, 21 Dec 2012 08:52 AM

 

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Hostess Brands Inc., the bankrupt maker of Twinkies snack cakes which last month won a judge’s approval to cease operations, said its wind-down is proceeding as planned.

Lawyers for the baker also told U.S. Bankruptcy Judge Robert Drain in White Plains, New York, that its cake brands will have separate so-called stalking horses making initial offers in an asset auction. Heather Lennox, a lawyer for Irving, Texas-based Hostess, said potential buyers are interested in brands and equipment.

The wind-down “needs to be an orderly process so I can make a good finding” that any sale is proper, Drain said.

The judge also granted an extension of the period during which Hostess has the exclusive right to submit a bankruptcy plan.

Hostess, the 82-year-old maker of Ding Dongs, Ho Hos and Drake’s Devil Dogs, said it was pushed into liquidation when its bakers’ union went on strike Nov. 9 after Drain imposed contract concessions opposed by 92 percent of the union’s members.

The company sought court protection in January, its second time in bankruptcy, listing assets of $982 million and debt of $1.43 billion.

The case is In re Hostess Brands Inc., 12-22052, U.S. Bankruptcy Court, Southern District of New York (White Plains).


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