U.S. govt objects to sale of Hostess assets to FBC Georgia

March 4 Mon Mar 4, 2013 9:36am EST

March 4 (Reuters) - The U.S. government has objected to the proposed sale of about 20 bakeries owned by Hostess Brands Inc to FBC Georgia LLC, saying it frees the buyer of liabilities and limits the government's ability to regulate.

Hostess, known for its Twinkies snack cakes, decided late last year to go into liquidation and sell its assets, following a bakery union strike that paralyzed its operations.

The sale deal for 20 bakeries frees FBC from any present or future claim that may arise even out of standard labor, environmental and other laws, Preet Bharara, U.S. attorney for the Southern District of New York, said in an objection filed on Friday.

Late last month, Flowers Foods Inc won an auction to buy Wonder Bread and some other brands while Mexico's Grupo Bimbo won the Beefsteak bread brand.

The case is In re: Hostess Brands Inc et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-22052.

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Comments (3)
Max_80919 wrote:
The only think you need to know the gov’t is concerned about “control”. This is the only reason they blocked it.

Mar 04, 2013 11:12am EST  --  Report as abuse
Evenett wrote:
We clearly need unlimited government regulations more than jobs.

Mar 04, 2013 12:28pm EST  --  Report as abuse
timkey wrote:
I don’t care if the company sells off it’s assets to whoever, the government should never be able to say anything one way or another. This reminds me of the government telling boing they could not open a plant in south carolina because it was taking union jobs from washington state. Whatever happened to the land of the free? Oh right, that’s only if you have paid off the right lobbyist.

Mar 04, 2013 7:22pm EST  --  Report as abuse
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