FLO looks nothing like "bankruptsy" and your assertion that it does takes away whatever credibility you might have here. That said, I agree with much of what you have said here.
There are many companies bidding on the assets of Hostess. I see no reason to think FLO is going to get a significant portion of them or, if they do, that they won't vastly overpay for the privilege. To that end, I am using options to short FLO.