Milling & Baking News - December 11, 2012 - 1

THE NEWS WEEKLY OF GRAIN-BASED FOODS DECEMBER 11, 2012

bakingbusiness.com / foodbusinessnews.net

FEATURE

look Out

Hostess receives ﬁnal approval from court to wind down
WHITE PLAINS, N.Y. — Hostess Brands, Inc. on Nov. 30 received final approval for its wind-down plan from the U.S. Bankruptcy Court in the Southern District of New York. The move paves the way for the Irving, Texas-based baker to sell or shutter 33 bakeries, 565 distribution centers, approximately 5,500 delivery routes, 570 bakery outlet stores and the loss of 18,500 jobs. In making its ruling on Nov. 30, the Court said Hostess “established sound business justification for the relief requested” in its motion, including the use and sale of assets. Additionally, the Court said Hostess “appropriately exercised their business judgment by determining to implement the wind-down plan, including the sale of various assets in connection therewith.” Business justifications made by Hostess for the wind down included the fact that a freefall shutdown and liquidation would, among other things, “irreparably damage production equipment, result in the failure to dispose, or improper disposal, of waste materials, materially adversely affect the debtors’ ability to maximize the sale value of their assets, and could
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Industry leaders provide perspectives on the grain-based foods outlook for 2013
Story on Page 23

LATE NEWS

Nisshin to buy milling unit in New Zealand
NORTH RYDE, NEW SOUTH WALES, AUSTRALIA — Nisshin Flour Milling Inc., a subsidiary of Tokyo-based Nisshin Seifun Group Inc., has agreed to acquire Goodman Fielder’s Champion flour milling business in New Zealand for NZ$51 million ($42.4 million). The price excludes net cash proceeds of NZ Milling receivables and payables. The transaction is expected to be completed in February 2013, subject to the satisfaction of conditions. “This transaction is another example of the successful execution of our strategy to divest non-core businesses to enable us to focus our capital and marketing expenditure and
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Weather Outlook 

Drought conditions continue, raising risk of winter wheat heaving
BY DREW LERNER

U.S. drought conditions have begun to worsen again in some areas across the nation, cheating the threat of heaving in winter wheat areas and creating problems elsewhere. Not only has the Great Plains, Midwest, lower Mississippi River Basin and southeastern states trended drier than usual, but temperatures frequently have been warm, as well. The combination has led to quick drying and an acceleration

in declining river and stream flows. In the meantime there is growing concern over continued rainy weather in Argentina threatening the success of summer crop planting and winter grain harvesting. Each of these issues will weigh on the minds of traders, producers and shippers during the month of December. Crop loss claims have been reported
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Marking nine decades in partnership with grain-based foods

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Milling & Baking News - December 11, 2012

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