Negotiations broke off with the company and its senior lenders on July 23, with both sides far apart on key issues. Hostess has communicated to us that it intends to present a final offer, which we expect to receive shortly.
There has been little to report since our last formal update of June 1, as there has not been any significant breakthrough in our discussions. However, we continue to work to get to an agreement with the Company and its senior lenders – hedge funds Silver Point Capital and Monarch Alternative Capital – and potential new investors.
Since our last update of May 15 when we reported that the Bankruptcy Judge had denied Hostess’ 1113motion to reject all Teamster contracts, we continue to talk with the Company, its senior lenders, and potential investors about ways to bring Hostess out of bankruptcy. To date there has been no agreement or breakthrough in these discussions.