Former Hostess Brands' bid procedures for asset sale approved by court

By Lisa Kerner

Charlotte, N.C., July 19 - Old HB, Inc., formerly Hostess Brands, Inc., was granted requested court approval of its bid procedures for the proposed $58.3 million sale of the company's remaining assets, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

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

As previously reported, 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.

A sale hearing is set for Aug. 21.

The sale is scheduled to close by Sept. 30.

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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