Hostess Brands Inc. today will seek bankruptcy court approval to put many of its brands on the auction block in coming weeks, including Twinkies and Ho Hos, Dow Jones Newswires reported on Friday. A bankruptcy court is set to consider three auction proposals from the liquidating baker, all of which have stalking-horse bids lined up to lead off the bidding at auctions Hostess wants to hold in March. Private-equity firms Apollo Global Management LLC and Metropoulos & Co. have teamed up to bid $410 million for most of Hostess's cakes business, including the Twinkie, Dolly Madison, Ho Hos and Ding Dongs brands. The bid also covers five bakeries and certain equipment. Hostess wants to pay the private-equity firms a $12.3 million breakup fee if they lose at the March 13 auction. The company is further proposing a March 19 sale hearing for the court to approve the winning bid. Also up for consideration before the court today are separate auction proposals for Hostess's Drake's brand and several bread brands, including Grandma Emilie's and Sweetheart.
