- From LexisNexis® Mealey’s™ Daily Legal News.
Bankrupt Hostess Brands Inc. on Jan. 28 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the bankruptcy court should approve the sale of some of its bakery assets for $ 28.85 million (In Re: Hostess Brands Inc., No. 12-22052, Chapter 11, S.D. N.Y. Bkcy.).
Hostess filed for Chapter 11 bankruptcy on Jan. 11, 2012.
The baker seeks to sell a collection of its assets known as the Northwest Bakeries Business Assets, comprising products under the brand names Sweetheart?, Standish Farms?, Grandma Emilie’s? and Eddy’s?.
Investment banker Perella Weinberg Partners (PWP) has made an offer to buy the assets for $ 28.85 million in cash, which the Bankruptcy Court should approve pursuant to 11 U.S. Code Section 363, Hostess argues.
Included in the deal is a breakup fee of $ 865,000 that PWP would receive if the deal doesn’t go through.
11 U.S. Code Section 363
Hostess maintains that the purchase agreement it has with PWP is the best offer it has been able to garner for the Northwest Bakeries Business Assets and will provide a greater recovery for the Hostess bankruptcy estate than would be provided by any available alternative.
Moreover, PWP is a good faith purchaser, Hostess says.