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.

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