March 4 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
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.