Former Hostess receives $58.3 million lead bid for remaining assets

By Caroline Salls

Pittsburgh, July 3 - Old HB, Inc., formerly Hostess Brands, Inc., requested court approval of the bid procedures for the proposed $58.3 million sale of its remaining assets, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company said the remaining assets include real estate, machinery and equipment and fleet assets.

Hackman Capital Acquisition Co., LLC is the stalking horse bidder. If Hackman is not the high bidder, Old HB will pay it a $1.75 million break-up fee and reimburse up to $600,000 of its security and property protection services expenses.

Competing bids are due by 5 p.m. ET on Aug. 8, and the auction will be held on Aug. 16.

Bidding at auction must be made in minimum increments of $250,000.

The sale is scheduled to close by Sept. 30.

The bid procedures hearing is scheduled for July 19.

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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