Former Hostess seeks OK of procedures for $6.2 million property sale

By Caroline Salls

Pittsburgh, June 11 - Old HB, Inc., formerly Hostess Brands, Inc., requested court approval of the bid procedures for debtor Interstate Brands Corp.'s proposed $6.2 million sale of real property and related assets in Jamaica, N.Y., to 168 Douglas Realty LLC, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The property was previously used as a baking facility, but was closed in late 2010, before Hostess filed bankruptcy.

If 168 Douglas is not the high bidder, the company will pay it a $60,000 break-up fee, which includes the stalking horse bidder's expenses.

Competing bids are due by 5 p.m. ET on July 18, and the auction will be held on July 23.

Bids must be at least equal to the stalking horse bid, plus the breakup fee and a $100,000 overbid. Bids at auction must be made in minimum increments of $100,000.

A hearing on approval of the bid procedures is scheduled for June 25.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.