Hostess Brands Inc.'s bid to sell its bread brands to Flowers Foods Inc. has hit a roadblock with unsecured creditors objecting to the break-up fees Flowers is entitled to for being appointed as the stalking-horse bidder, Reuters reported yesterday. The break-up fees is too high and contains an unusual "most favored nation" provision that gives Flowers a windfall without conferring an equal benefit to Hostess, a committee representing unsecured creditors said in its objections filed yesterday. Flowers on Jan. 11 agreed to buy Wonder and other well-known bread brands from Hostess for $360 million as well as its Beefsteak brand for another $30 million. The Flowers purchase is subject to higher bids at a court-supervised auction and the company is entitled to a break-up fee of $12.6 million for the bread brands and $1.05 million for the Beefsteak brand.
