WHITE PLAINS, N.Y. – A hearing has been set for Nov. 29 to determine the adequacy of the reorganization plan of Hostess Brands, Inc. The hearing will be held in the United States Bankruptcy Court, Southern District of New York, in White Plains.
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Objections to the reorganization plan must be filed with the court no later than Nov. 19. Hostess filed its proposed reorganization plan Oct. 10.
In the proposed plan, Hostess said it will file financial projections and liquidation analysis at least seven days before the objection statement deadline, meaning no later than Nov. 12.
The reorganization plan does contain the most comprehensive compilation of financial results at Hostess issued in recent years.
Hostess suffered a loss of $1,140.5 million in the 53 weeks ended June 2, which compared with a loss of $340.7 million in the 52 weeks ended May 28, 2011, and $137.8 million in the 52 weeks ended May 29, 2010.
Hostess said the most recent 53-week period included a $931.9 million expense related to pension withdrawal, as well as reorganization charges of $33.5 million related to its Chapter 11 cases.
In the 53 weeks ended June 2 Hostess sustained an operating loss of $1,058.2 million, which compared with a loss of $186.2 million in the period ended May 28, 2011, and a loss of $55.5 million in the period ended May 29, 2010.
While the operating losses have mounted, net revenues have declined over the past three years.
Net revenues in the 53 weeks ended June 2 were $2,466.5 million, which compared with $2,474.1 million and $2,584.5 million in fiscal 2011 and fiscal 2010, respectively. The company’s sales in fiscal 2004, before the bankruptcy filing, were $3,467.6 million.
By way of comparison, annual revenues at Flowers Foods, Inc., rose to $2,773.4 million in 2011 and were only $1,553.1 million in 2004.
In its balance sheet, Hostess listed current assets of $252.5 million as of June 2, 2012, including $56.5 million in cash, $106.5 million in receivables, $51.8 million in inventories and $37.4 million in other current assets. The company’s overall assets of $1,015.2 million compared with liabilities of $2,523.4 million.