Hearthside Drives Forward in its Financial Restructuring Following Successful First Day Hearing

Receives Court Approval on “First Day” Motions, Enabling Company to Continue Operating Business-as-Usual Throughout its Chapter 11 Cases

Hearthside Drives Forward in its Financial Restructuring Following Successful First Day Hearing

Media
C Street Advisory Group
Hearthside@thecstreet.com

Marking a key milestone in its financial restructuring process, H-Food Holdings LLC and certain of its affiliates (“Hearthside” or the “Company”), a leading food contract manufacturer, yesterday received interim or final approval on all of its “First Day” motions from the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) in connection with the Company’s voluntary Chapter 11 proceedings.

Among other customary relief, the Court granted interim approval for the Company to immediately access cash collateral, which will provide ample liquidity to support ongoing operations during the onset of the Chapter 11 process. In addition, the interim relief granted by the Court will enable the Company to continue operating in the ordinary course of business for its key stakeholders, including maintaining its customer programs, paying vendors for goods and services on a post-petition basis, and continuing to pay employee wages and benefits as usual.

“With strong support from our key financial partners and other important stakeholders, we look forward to moving through this process swiftly and positioning Hearthside for significant long-term growth,” said Darlene Nicosia, Chief Executive Officer of Hearthside. “With the significant Court approvals received yesterday, we move forward well-equipped to operate in a business-as-usual manner during our cases as we continue delivering the best-in-class products and services our customers expect.”

Hearthside intends to move through its cases in an efficient manner and expects to emerge from Chapter 11 in the first quarter of 2025. The “Second Day” hearing is scheduled for December 18, 2024, where the Company expects to seek approval of a $150 million new money debtor-in-possession financing facility to further support ongoing operations and final approval of the interim orders entered by the Court.

More information regarding the Chapter 11 process is available at https://cases.ra.kroll.com/HFS. Stakeholders with questions can contact the Company’s claims agent, Kroll, by calling (888) 510-7189 (U.S. and Canada toll free) or +1 (646) 937-7810 (International) or emailing HFSinfo@ra.kroll.com.

Advisors
Ropes & Gray LLP and Porter Hedges LLP are serving as legal advisors, Evercore Group L.L.C. is serving as investment banker, Alvarez & Marsal is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor to the Company.

About Hearthside
Headquartered in Downers Grove, Illinois, Hearthside Food Solutions is the leading contract manufacturer and producer of baked foods, snacks, and nutrition bars, and a full-service provider of food packaging services for many of the world’s premier brands. The company is also the industry’s largest private bakery. Hearthside’s production network includes 28 facilities, with a workforce of approximately 12,100. In 2018 Hearthside was acquired by Charlesbank Capital Partners and Partners Group. For more information on Hearthside Food Solutions, please visit www.hearthsidefoods.com.

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