Hostess Creditors Say Breakup Fee Promises Too Much Dough

Law360, New York (January 23, 2013, 4:20 PM EST) -- Private equity firms, hedge funds and other unsecured creditors of Hostess Brands Inc. on Tuesday protested the nearly $14 million breakup fee attached to a proposed $390 million stalking horse bid for the bankrupt bakery company's bread division.

The allegedly inflated fee would have a chilling effect on potential future bids for the Hostess bread businesses, which include the popular Wonder and Beefsteak bread lines, the official committee of unsecured creditors told U.S. Bankruptcy Judge Robert D. Drain in their objection.

“Therefore, the committee submits that...
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