$390M Stalking Horse Bid For Hostess Bread Biz Gets OK

Law360, New York (January 25, 2013, 3:45 PM EST) -- A New York bankruptcy judge on Friday greenlighted the bidding process for the bread division of Hostess Brands Inc., certifying Flower Foods Inc. as the stalking horse bidder with a proposed bid of $390 million.

Unsecured creditors of Hostess had objected to a 3.5 percent break-up fee attached to the price, which translated to $14 million, but the parties negotiated the fee down to 3 percent, or $11.8 million. Hostess also toughened a most-favored-nation provision that would be triggered if it went with a different buyer and...
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