Hostess Brands Files Plan of Reorganization
Hostess Brands Inc. announced that the company and its five subsidiaries have filed their Joint Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York.
The Disclosure Statement includes detailed information regarding labor agreements, the treatment of claims and interests, the company’s business plan, and events leading up to and during Hostess’ Chapter 11 cases. The plan and Disclosure Statement remain subject to further modifications and approval by the court.
“The filing of the plan and Disclosure Statement is a major milestone for Hostess, our employees, suppliers and customers,” said Gregory F. Rayburn, the company’s chairman and CEO. “The plan sets forth the blueprint for Hostess to emerge from bankruptcy. We will continue to work toward putting the pieces in place for that emergence so that we can thrive again as a robust competitor and continue to serve our loyal customers for years to come.”
“Demand for Hostess products has been very resilient, giving us a solid base to work from,” Rayburn said. “With a competitive cost structure and fresh capital at our disposal, we can begin to make the kinds of investments in our business that is essential to our future success.”
Rayburn said Hostess is working to complete its restructuring and exit Chapter 11 in the next few months, provided the plan is confirmed by the Court overseeing the company’s restructuring.
“I’d like to thank our employees for their continued hard work and commitment,” Rayburn said. “Every single Hostess employee has made sacrifices to preserve jobs and improve the company’s financial strength. Upon emergence, our union-represented employees will hold 25% equity ownership, a $100 million interest-bearing note and have two seats on the Board of Directors on critical committees to ensure their voice is heard.”
Hostess filed for Chapter 11 protection on January 11, 2012.
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