Hostess Gets Green Light To Bite Into Another $40M

Law360, New York (February 2, 2012, 9:12 PM EST) -- A New York bankruptcy judge on Thursday allowed Hostess Brands Inc. to tap into another $40 million in post-petition financing, overruling objections from pension plans and other unsecured creditors who claimed the agreement would give lenders a “stranglehold” over the case.

U.S. Bankruptcy Judge Robert Drain ruled that denying the company access to a second, final pot of debtor-in-possession financing would be “penny-wise and pound-foolish,” despite revelations that the company has far more cash on hand that it originally predicted it would.

“I think it's better...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.