Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Kraft Foods Inc    KFT

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Kraft Foods Inc. : Hostess returns to bankruptcy over pensions

share with twitter share with LinkedIn share with facebook
share via e-mail
01/11/2012 | 09:50am CET
A Wonder Bread delivery truck trailer is seen parked outside the bakery plant in New York

Twinkies and Wonder Bread maker Hostess Brands Inc filed for bankruptcy protection for the second time in less than three years, after failing to reach an agreement with workers on pension and health benefits.

Hostess' declining financial performance, crippling legacy costs associated with its pension plans and massive debt levels led the company to Chapter 11 bankruptcy, court papers showed on Wednesday.

The company, which has about $860 million in debt, said it does not expect disruptions in the manufacturing and delivery of its products during the bankruptcy process.

To reorganize itself, the company must withdraw from multiemployer pension plans, address legacy health and welfare costs and secure new capital to modernize its production and distribution operations, Irving, Texas-based Hostess said.

The company had total assets of $981.6 million and liabilities of $1.43 billion as of December 10, 2011.

Hostess said it has secured $75 million in debtor-in-possession financing from its existing lenders led by Silver Point Capital LP.

The privately held company said it had made efforts to sell its businesses and other M&A alternatives, including reaching out to companies like Smuckers, Kraft, Blackrock, KKR and others without any success.

Hostess, founded in 1930, operates around 36 bakeries and employs about 19,000 people, a majority of whom are members of 12 unions.

"We remain hopeful that we can reach an agreement that will allow us to amend our labor contracts so that we can emerge from Chapter 11 as a highly competitive company that provides secure jobs for our employees," Chief Executive Brian Driscoll said in a statement.

Hostess, formerly known as Interstate Bakeries Corp, had first filed for bankruptcy protection in 2004 in Missouri and emerged from it in February 2009 with private equity firm Ripplewood Holdings and other lenders taking control.

The case is Hostess Brands Inc, Case No. 12-22052, U.S. Bankruptcy Court, Southern District of New York.

(Reporting by Kavyanjali Kaushik and Tanya Agrawal in Bangalore; Editing by Greg Mahlich and Gopakumar Warrier)

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on KRAFT FOODS INC
01:08p MONDELEZ INTERNATIONAL : Lawmakers Urge U.S. Trade Representative to Prioritize ..
12/15 MONDELEZ INTERNATIONAL : Mondelz International Declares Regular Quarterly Divide..
12/12 Mondelēz International Declares Regular Quarterly Dividend of $0.22 per ..
12/04 MONDELEZ INTERNATIONAL : Free Post Earnings Research Report: Mondelez Internatio..
11/24 Brands pull YouTube ads over images of children
11/04DJSales and Spending Surge at U.S. Firms -- WSJ
11/03DJAs Economy Gains Strength, Companies Sell (and Spend) More
11/02 Kraft Heinz misses sales estimates as U.S. demand weakens
10/31DJMONDELEZ INTERNATIONAL : Gains As Americans Snap Up Snacks -- WSJ
10/31DJMONDELEZ INTERNATIONAL : Correction to Mondelez Story
More news
Financials ($)
Sales 2017 25 726 M
EBIT 2017 4 237 M
Net income 2017 3 061 M
Debt 2017 15 867 M
Yield 2017 1,85%
P/E ratio 2017 21,95
P/E ratio 2018 18,75
EV / Sales 2017 3,14x
EV / Sales 2018 3,05x
Capitalization 64 827 M
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 48,6 $
Spread / Average Target 12%
EPS Revisions
Dirk van de Put Chief Executive Officer & Director
Irene B. Rosenfeld Chairman
Brian T. Gladden Chief Financial Officer & Executive Vice President
Robin S. Hargrove Executive VP-Research, Development & Quality
Mark D. Ketchum Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
NESTLÉ16.36%264 638
DANONE17.49%56 107
GENERAL MILLS, INC.-8.58%32 333