Daily News: November 30, 2012

Court Grants Final Liquidation Approval to Hostess

U.S. Bankruptcy Judge Robert Drain in the U.S. Bankruptcy Court in the Southern District granted final approval for Hostess Brands liquidation and upcoming sale of its brands and assets, a Bloomberg article said.

Hostess said at the hearing that it has more than 100 interested buyers for its brands. Perella Weinberg Partners’ Joshua Scherer said in the article that at least six of the potential buyers have lined up banks to aid in the financing of the Hostess brands.

In addition, the court granted permission for the company to pay its executives $1.8 million in bonuses because they met goals during the liquidation process. These bonuses, the article said, will keep these executives with the company during the liquidation process which could take a year to complete.

A related Bloomberg article reported that the company is asking the court to cut about $1.1 million in retiree benefits as part of its liquidation plan.

Hostess Brands Inc., the defunct maker of Twinkies and Wonder Bread, told a bankruptcy court that it must cut $1.1 million a month in retiree benefits as part of its liquidation plan.

Judge Drain gave approval for the retirees to form a committee to “defend their rights.”

Separately, a Reuters’ article announced that the Bakery, Confectionery, Tobacco and Grain Millers Union asked Judge Drain to appoint a Chapter 11 trustee for the company’s liquidation because they didn’t want Hostess’ management running the wind-down.

To read the Bloomberg article, click here.