Hostess Brands Inc. plans to ask for a judge's approval Thursday to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.
The maker of Twinkies, Ding Dongs and Ho Hos says the incentive pay is needed to retain the 19 managers during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation.
Senior executives would get the bonuses ranging from $7,400 to more than $130,000. The bonuses are contingent on the executives hitting certain benchmarks in managing the liquidation.
Hostess is also seeking final approval for its wind-down, which was approved on an interim basis last week.
The process includes the quick sale of its brands, which also include Wonder Bread. Hostess says it has received a flood of interest in the brands.
The company's bankruptcy means loss of about 18,000 jobs.
Also in bankruptcy court, Hostess said its in talks with more than 100 potential buyers for the products it makes, including Twinkies. A financial adviser for the company said suitors now include at least five national retailers ready to pay substantial amounts of money.
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