By Marcus Leach
Hostess Brands, Inc. announced today (Wednesday) that the Company and its five subsidiaries have filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
Concurrent with the filing, the Company said that, subject to Court approval, it has received a commitment for $75 million in debtor-in-possession (DIP) financing from a group of its existing first-lien lenders, led by Silver Point Capital, L.P.
The financing will enable the Company to continue routine operations while undertaking a comprehensive financial and operational restructuring to transform it into a strong, competitive company.
During the Chapter 11 proceeding, the Company will continue operating its bakeries, outlet stores and distribution centers and delivering its products to its customers across the country.
The Company does not anticipate any disruptions in the manufacturing and delivery of any of its bread or cake products. The Company’s brands, including Wonder®, Merita® and Butternut® breads; Drake’s®, Twinkies® and Hostess® cakes, will still be available and on store shelves everywhere.
“Hostess has some of our industry's most powerful and resilient brands,” said President and Chief Executive Officer Brian Driscoll.
“With generations of loyal consumers, numerous iconic products and a talented and experienced workforce, Hostess Brands has tremendous inherent strengths to build upon.”
The Company has requested the Court to authorize certain actions, including entering into the DIP financing agreement, continuing wages for employees without interruption and maintaining all customer programs.
Join us on