Hostess Brands Inc. is looking to hire and borrow $30 million from Illinois-based Hilco Trading LLC to help the company wind down its operations in liquidation.
If approved by U.S. Bankruptcy Court, the loan against Hilco reportedly would take priority over claims of other Hostess’ creditors. Those unpaid creditors already are filing complaints about the way Hostess is paying its administrative claims.
A court filing says that the agreement between Hostess and Hilco Industrial LLC, Hilco IP Services LLC and Hilco Real Estate LLC would land Hostess a “second priority secured loan (of up to) $30 million, payable to Hostess in cash within two business days,” after a court-ordered approval of the deal.
Meanwhile, ex-Hostess workers are getting help from the Missouri Department of Economic development.