Former Hostess receives approval of $1.95 million Kroger settlement

By Caroline Salls

Pittsburgh, Dec. 4 - Old HB, Inc., formerly Hostess Brands, Inc., received court approval of a settlement with Kroger Co., according to a Dec. 4 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Old HB said its books and records showed remaining invoices for $2.84 million of Hostess products delivered to Kroger before entry of Hostess' wind-down order.

Kroger disputed some of this amount.

Old HB said it filed a lawsuit against Kroger on March 1, 2013.

Under the settlement, Kroger will pay $1.95 million to Old HB, the parties will enter into mutual releases, and some administrative claims filed by Kroger will be withdrawn.

Hostess Brands, an Irving, Texas-based operator of regional bakeries, filed for bankruptcy on Jan. 11, 2012. Its Chapter 11 case number is 12-22052.

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