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Published on 3/4/2013 in the Prospect News Distressed Debt Daily.

Hostess sues Kroger, PriceRite for overdue bills on products delivered

By Jim Witters

Wilmington, Del., March 4 - Hostess Brands, Inc. is seeking $2.83 million from the Kroger Co., its subsidiaries and PriceRite for products delivered more than 60 days ago, according to documents filed March 4 with the U.S. Bankruptcy Court for the Southern District of New York.

Hostess says the invoice terms call for payment within seven days of delivery.

The deliveries occurred after Hostess filed its bankruptcy petition but before a wind-down order was entered in the case, the documents state.

Hostess is seeking payment of the full amount, plus interest, and an expunging of any claims that Kroger and PriceRite have filed against the debtors' estates as part of the bankruptcy proceeding.

No hearing has been scheduled for the adversary proceeding.

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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