Hostess talking to dozens of interested parties
November 22, 2012 5:42 AM EST
Hostess Brands Inc has received a "flood of inquiries" from a range of parties interested in buying several of its brands, the snack cake maker's lawyer said on Wednesday.
At a hearing in the U.S. bankruptcy court in White Plains, New York, the lawyer Heather Lennox of Jones Day said Hostess expects to find "stalking horse" bidders for some brands within a few weeks, with court-supervised auctions to follow.
Joshua Scherer, a partner at Perella Weinberg Partners which is advising Hostess, said the company was in "active dialogue" over the Drake's brand with one "very interested" party, which had taken a three-hour tour of a New Jersey plant on Tuesday.
Scherer did not identify the party by name, but said interested entities included regional bakery companies, national competitors, retail customers, private equity firms and consumer products companies.
Earlier this year, Hostess received six bids for the whole company, Scherer said, but "none of them was actionable."
Beginning in the summer, a sale process was begun, he said, to see whether individual brands could be sold to raise funds to help exit Chapter 11 bankruptcy protection.
But in the last couple of days, since Hostess said it planned to liquidate, it has received over two dozen inbound calls, Scherer said, adding that more than 50 parties have signed non-disclosure agreements.
As for the value of Hostess, Scherer said Hostess could be worth $2.3 billion to $2.4 billion in a normal bankruptcy, an amount equal to its annual revenue. But he said he would expect a discount in this case since plants have already been closed.
(Reporting By Martinne Geller and Jonathan Stempel in New York; Editing by Gerald E. McCormick)
Most Popular Slideshows
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
- British Style Icon Kate Middleton Fashion Talk With Camilla Parker-Bowles Daughter-In-Law [PHOTOS]
Join the Conversation
- 4.7-Inch, 5.5-Inch iPhone 6 Models Confirmed with Similar Build, Cam Features & 300+ Screen Pixels on Release Date
- James Foley Beheading Video Has Play-Acting Portions – Video Experts Say
- Apple iPhone 6 Release Date, iPhone 6C or 6L Anticipation: Three Things Should Matter To New Phone Shoppers
- Xiaomi Mi4 vs iPhone 6: Why Forecasts Favor Mi4 as The Next Best Phone Against iPhone 6
- James Foley: More Chilling Information Revealed By Escaped Journalists
- Companies Push Back IPO Plans Due to Mega Alibaba Share Launch
- Samsung Galaxy Note 4 Release Date Update: 4 Feature Upgrades That Really Matter