Bankruptcy Judge Robert D. Drain yesterday gave final approval to Hostess Brands' plans to wind itself down and sell famous brands like Twinkies to help pay creditors, the New York Times DealBook blog reported yesterday. Judge Drain also approved a plan to pay out up to $1.8 million in bonuses to 19 senior executives. He did so over criticism that the payouts were excessive, noting that none of the executives were in running the company when it filed for bankruptcy protection in January for the second time in a decade. Judge Drain's approval formally sets up what increasingly looks like a crowded auction for Hostess's stable of well-known baked goods, from Twinkies to Ho Hos and Ding Dongs to Drake's cakes. Read more: http://dealbook.nytimes.com/2012/11/29/interest-in-hostess-brands-comin…
In related news, nearly 110 potential bidders have contacted the Hostess about bidding for at least part of its business, and 70 had enough interest to sign confidentiality agreements, Reuters reported yesterday. Joshua Scherer of Perella Weinberg, who was hired by Hostess to sell its assets, said that six potential bidders have hired large investment banks to help them. He said the liquidation could raise $1 billion. Read more: http://www.reuters.com/article/2012/11/29/hostess-bankruptcy-liduidatio…