Hostess, loan agents reach deal on cash collateral use through Aug. 7

By Caroline Salls

Pittsburgh, July 26 - Hostess Brands, Inc. has entered into a stipulation with its pre-bankruptcy revolving credit facility agent, debtor-in-possession facility agent and pre-bankruptcy first-lien agent on the company's use of cash collateral, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

On July 20, Hostess requested court approval to continue to use cash collateral until Nov. 2.

According to that motion, the company's use of the cash, which is comprised of the proceeds of revolving priority collateral, was scheduled to terminate on July 31.

The July 27 interim cash collateral use hearing has been adjourned as part of Thursday's stipulation. The final hearing is scheduled for Aug. 7.

Also under the stipulation, Hostess will be permitted to continue to disburse no more than $92.7 million in funds during the period of July 28 to Aug. 7.

Hostess Brands, an Irving, Texas-based operator of regional bakeries, filed for bankruptcy on Jan. 11, 2012. Its Chapter 11 case number is 12-22052.

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