Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Hostess Begins First Round Of Bankruptcy Auctions
Author: Joel R. Glucksman
Date: February 26, 2013
Key Contacts
Back
Hostess Brands will soon begin the process of auctioning off its most iconic labels in an effort to emerge from protection under bankruptcy law.
The process will begin in the last week of February, during which the company will auction off several of its brands, including Wonder Bread, Dow Jones Newswires reports. One bidder – Flowers Foods – has already shown great interest in several of the brands and has offered $360 million for five of them, including Wonder Bread and Nature’s Pride. Flowers Foods currently produces Tastykakes and Nature’s Own. The auction will be overseen by a U.S. Bankruptcy judge who must approve any bids before they are allowed to move forward. However, if Flowers Foods loses the Wonder Bread brand to a higher bidder, it will receive a $10.8 million break-up fee.
Another auction will take place in March, during which the coveted Twinkies and Ho Hos brands will be put up for sale. Private-equity firms Apollo Global Management LLC and Metropoulos & Co. have created a partnership to bid roughly $410 million for most of Hostess’s cakes business, including Twinkies and Ho Hos. Hostess has agreed to pay the equity firms $12.3 million if they lose the bid during the March 13 auction, according to MarketWatch.
A third bidder, McKee Food Corp., the maker of Little Debbie snack cakes, has its eye on Hostess’s Drake’s and a number of bread brands, including Grandma Emilie’s and Sweetheart. The company has offered up a $27.5 million bid for the Drake’s brand and equipment, MarketWatch notes.
Hostess originally sought Chapter 11 bankruptcy, which would have allowed it to restructure its assets, but moved to a Chapter 7 liquidation in November after discovering that future projected income would not support its restructuring plan.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?
Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]
Author: Chris Seelinger
How Expert Witness AI Use Ends Up in Discovery
“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
Author: Chris Seelinger
The Screenshot Problem: Why Nothing Is Really Private Anymore
Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.