Lawyers for Hostess to Appear in Court Today; Twinkies May Survive
Posted Nov 19, 2012 10:36 AM CDT
By Debra Cassens Weiss
Lawyers for Hostess Brands will appear in New York bankruptcy court today as the company begins the process of selling its assets.
Several companies have expressed interest in bidding for parts of the company, the Associated Press reports. The company’s well-known Twinkies snack cakes brought in in $68 million in revenue so far this year, making it an attractive acquisition.
AP quotes University of Michigan bankruptcy law professor John Pottow about Twinkies’ future. “There’s a huge amount of goodwill with the commercial brand name,” he said. “It’s quite conceivable that they can sell the name and recipe for Twinkies to a company that wants to make them.”
A legal team from Jones Day, led by bankruptcy partner Corinne Ball, filed the liquidation request on Friday, according to the Am Law Daily. The publication previously reported that Ball’s hourly billing rate is $975.
Venable is representing the company as special employee benefits counsel, and Stinson Morrison Hecker is acting as general corporate and conflicts counsel.