According to Reuters, Hostess Brands Inc., the bankrupt maker of Twinkies snack cakes, received court permission to wind down its 82-year-old business on Nov. 29 but revealed interest in its brands from potential buyers. New York Bankruptcy Court Judge Robert Drain approved the final orders that cleared the way for the company to begin selling its assets, everything from brands such as Ding Dongs and Twinkies to baking equipment and real estate.
Around 110 potential bidders have contacted the company about bidding for at least part of its business, and 70 had enough interest to sign confidentiality agreements, Hostess’ banker told the hearing in White Plains, N.Y.
By early January, the company expects to have initial bids for its various brands, which will then be put to auction. Money raised from the sale of assets will help Hostess repay its creditors. It has about $900 million of secured debt and faces up to about $150 million of administrative claims.
In addition, according to the Los Angeles Times, Judge Drain also approved Hostess to give as much as $1.75 million in bonuses to its executives. The money is intended as an incentive for 19 top-level managers to remain with the company to oversee its liquidation.
