Judge Greenlights Hostess Deal To Pay ACE Insurance Debt
By Maria Chutchian
Law360, New York (January 18, 2013, 3:49 PM ET) -- A New York bankruptcy judge on Thursday gave Hostess Brands Inc. and ACE American Insurance Co. the go-ahead to enter a deal that allows the company to pay off debts owed to the insurer and its ESIS Inc. affiliate and puts to rest a contentious battle over the funds.
U.S. Bankruptcy Judge Robert D. Drain’s approval allows the fallen snack icon to reimburse the insurers for deductible payments it has owed since mid-November. The deal calls for the insurers to receive an administrative claim if they and Hostess...