Thanks for telling me what happened. I'll tell you what really happened, though: Hostess erased most of its debt in bankruptcy but needed to take on new debt intended for conversion into operating capital. Hostess should never have emerged from bankruptcy without addressing its incredibly high labor costs, but its Democratic "venture capitalist" felt strongly that sales would rise. He was dead wrong, and the decline in sales accelerated. When your revenues continue to fall every year, you need to cut expenses - not add to them.
Again...that points to a bad management problem. The unions had already given up concessions before and yet they still continued to operate at the same capacity? Give me a break. They knew they were on their way out. That's why the executives in 2010 gave themselves an 80% percent raise.