From that article
by James Denison - 11/17/12 10:39 PM
In Reply to: (NT) So they still may profit, even closing the company by Roger NC
Since you seem so concerned funds might actually get some money back, and seem even worried they might come out ahead on this;
"Right now, according to sources with knowledge of Hostess's debt structure, Silver Point and Monarch each hold Hostess obligations with a market value of between $50 million and $100 million. Those sources also say each hedge fund probably paid somewhere between $125 million and $175 million for that debt. So even with losses to date, both hedge funds have ample skin in the game -- skin they'd like to get out of the game sooner rather than later"
There are no winners here.