The Indiana Finance Authority has given debt-saddled Indiana Toll Road Concessions Co. until late November to prove it can pay back its lenders.
Hostess employed more than 850 workers in Indiana and more than 18,000 nationwide.
A bankruptcy judge declined to act on the request from Hostess to sell its assets to give an opportunity for both sides to mediate.
Hostess Brands announced Friday it is going out of business after strikers did not return to work Thursday.
There is no mechanism in Indiana law that would allow the state to takeover a cash-strapped district.
The bankruptcy trustee of Columbus-based Irwin Financial Corporation has filed a lawsuit against chairman William I. Miller and two other executives.
Howard County and Delphi Corporation have reached a conclusion to a dispute over the company's $6.4 million in back property taxes.