Hostess Brands could close sales of some assets by mid-March, according to testimony in bankruptcy court in Lower Manhattan Friday. A representative from Hostess's financial advisor, Perella Weinberg said that a number of bidders threw their hats in the ring on December 10.
The firm has winnowed down those bids to a few "stalking-horse" bidders. Stalking-horse bids would set a floor for auctions that could occur in February. (Read More: The Fight to Buy Hostess: Main Street vs. Wall Street)
A stalking-horse bid refers to an initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid.
Perella Weinberg expects to be able to file some of these bids in time for two bankruptcy hearings on January 25 and February 11, 2013. Once the bids are discussed in court, the brands can be put up for a general auction, which could take another 4 weeks. Any sales that come out of those auctions would take another two weeks or so to close.
"We will have stalking horse bids for substantially all of the brands by January," a representative of Perella Weinberg told the court.