WHITE PLAINS, N.Y. — Judge Robert D. Drain of the U.S. Bankruptcy Court Southern District of New York on July 19 authorized Hostess Brands, Inc. (Old HB, Inc.) to hold an auction on Aug. 16 to sell its remaining assets, including certain real estate, machinery, equipment and fleet assets located in 34 states that were not sold after the company ceased operations in November 2012.
Mr. Drain also approved Los Angeles-based Hackman Capital Acquisition Company, L.L.C. to serve as stalking-horse bidder at the auction. Hackman Capital was one of approximately 400 parties that submitted bids for the assets between May and June. Although the highest and best bids from parties other than Hackman, when combined, totaled approximately $60.2 million in aggregate consideration, Hackman’s bid of $58.3 million in cash with no due diligence was considered the best bid, according to court documents.
“Given the significant environmental concerns raised by potential purchasers, the debtors believe that the buyer’s willingness to commit to purchase the remaining assets now on an as-is basis provides valuable certainty to the debtors’ estates,” Hostess Brands, Inc. said in a July 3 filing.
As the stalking horse bidder, Hackman Capital will get a $1.75 million breakup fee if it is outbid at the auction.
The deadline for competing, qualified bids is Aug. 8, with a potential sale hearing set for Aug. 21.