Former Hostess OK’d to sell remaining assets to fourth-lien entities

By Caroline Salls

Pittsburgh, Nov. 12 – Old HB, Inc., formerly Hostess Brands, Inc., received court approval to sell and transfer its remaining assets to entities created for the benefit of fourth-lien debtholders, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The company said it negotiated an asset purchase agreement under which Ostess LLC and Ostess Services LLC, entities created for the benefit of holders of Old HB’s 2019 notes, will buy the remaining assets via a credit bid.

Old HB said it has paid all secured debt obligations that are entitled by law to payment before the 2019 noteholders, and all claims that give rise to statutory liens, including mechanics liens, possessory liens and property tax liens, have been paid in full with no further amounts outstanding.

The company said at least $156.6 million in principal amount remains outstanding under the 2019 notes, exceeding “any reasonable estimation of the value of the remaining assets.”

According to the motion, there will be no further assets to administer after the transfer of the remaining assets, meaning there will be no prospect of payment of unsecured claims and no chance of confirming a Chapter 11 plan.

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.