Lance Inc.: in line to acquire two bankrupt cookie companies

Charlotte / NC. (prn) A Delaware U.S. Bankruptcy Court has approved Lance Inc. to set the opening bid for the assets of two snack food companies. Charlotte-based Lance has placed a bid of 30 million USD for the combined assets of Archway Cookies LLC (Ashland | OH) and Mother´s Cake and Cookie Co. (Battle Creek | MG). The position Lance is taking makes it the «stalking horse» in the auction. In a bankruptcy auction this tactic is used by bankrupt companies to prevent other bidders from making low-ball bids. Under the court-approved auction procedures, Lance could lose the auction to a higher bidder. Any competing bids must be submitted by the last week of November. In the event competing bids are received, an auction will be held during the first week of December. This would be followed by the bankruptcy court conducting a hearing for final approval of the sale. If Lance wins the auction, the company plans to use available liquidity under its current credit facilities to fund the acquisition. Archway Cookies LLC was founded in the 1930s and is one of the United States´ top producers of branded cookies. Its brands are found in grocery stores and mass merchants throughout many parts of the USA. The company operates one bakery in Ohio. Mother´s Cake and Cookie Co. owns a number of additional cookie brands – primarily sold throughout the western United States (source).