Union, pension fund appeal Hostess wind-down approval
Dec. 14, 2012
by Jeff Gelski
NEW YORK – The selling off of the Twinkies brand and other Hostess Brands, Inc.’s assets took another twist, and possibly a delay, on Friday, Dec. 14. An appeal to stop a wind-down plan of the company was filed in the U.S. Bankruptcy Court, Southern District of New York by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery and Confectionery Union and Industry International Pension Fund. Hostess Brands received wind-down approval from the court on Nov. 30.
The Dec. 14 appeal involves the approval of the wind-down plan, the sale of certain assets, going-out-of-business sales at the debtors’ retail stores, the debtors’ use of cash collateral and modifications to final detors-in-possession order, an employee retention plan, a management incentive plan, protections for certain employees implementing the wind-down of the debtors’ businesses, the use of certain third-party contractors and procedures for the expedited rejection of contacts and leases, and authorizing the debtors to take any and all actions necessary to implement the wind-down.
Hostess has said it was in active dialogue with 110 potential bidders for portions of the company, 70 of which signed non-disclosure agreements allowing them to conduct due diligence.