Former Hostess Co. Settles Bad Bread Suit With Utah Bakery
By Emily Atkin
Law360, New York (October 17, 2013, 2:02 PM ET) -- The company formerly known as Hostess Brands Inc. asked a New York bankruptcy judge Wednesday to approve a settlement with the Utah bakery accused of selling 43,000 loaves of “defective” bread to a Hostess subsidiary that the company later had to recall.
Old HB Inc. and its affiliates said Salt Lake City-based Papa Pita Bakery had agreed to pay $145,000 to settle the August suit, which was filed in the bankruptcy court where Hostess’ operations are currently winding down. Hostess claimed it was owed almost $231,000...