Hostess back to the negotiation table!

[Will E Worm]

Death of Twinkies on hold as judge tries to save Hostess jobs

Hostess Brands Inc agreed in court on Monday to enter private mediation with its lenders and leaders of a striking union to try to avert the liquidation of the maker of Twinkies snack cakes and Wonder Bread.

Hostess, its lenders and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who advised against a more expensive, public hearing regarding the company's liquidation.

"My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter," Drain said.

The 82-year-old Hostess was seeking permission to liquidate its business, claiming that its operations have been crippled by a bakers strike and that winding down is the best way to preserve its dwindling cash.

Hostess suspended operations at all of its 33 plants across the United States last week as it moved to start selling assets.

Heather Lennox, a lawyer for Hostess, said it would be hard for the company to recover from the damage it sustained due to the strike even if an agreement was forthcoming. Yet following the hearing, Hostess Chief Executive Officer Gregory Rayburn told reporters that there was always a chance Hostess could be saved.

"I think we have to see what unfolds. My impression is that the judge wants to understand the parties' positions and some of their logic, but it doesn't change our financial position," Rayburn said.

"I'm happy to have the help," he added, referring to Drain's urging of discussions following a breakdown of communication between Hostess and the union. "Maybe the judge will help. But can I handicap how it's going to go? No way."

Hostess faces several objections to its liquidation plan.

The U.S. Trustee, an agent of the U.S. Department of Justice who oversees bankruptcy cases, said in court documents it is opposed to the wind-down plan because Hostess plans improper bonuses to company insiders.

Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation.

Article


:clap: Too delicious to fail.

 

[Red Spyder]

I'd rather see unions dissapear instead of twinkies. I have enjoyed more "El Submarinos" than any union "protection" (is that their racket? :dunno

 

[squallumz]

see.

 

[JasonCook78]

I want a mothafuckin' Twinkie!!! I Miss Golden Sponge Cake with Creamy Filling Goodness.

 

[zeeblofowl_1969]

I'd rather see unions dissapear instead of twinkies. I have enjoyed more "El Submarinos" than any union "protection" (is that their racket? :dunno

I really have no love for unions but until corporate America turns their ruthless nature away from their employees and focuses it at their competition they will always be a necessary evil. I say FUCK the Chinese force American companies to bring their manufacturing jobs back to America or jail their CEO's and nationalize their companies. America first only first and nothing but first.

 

[zeeblofowl_1969]

I want a mothafuckin' Twinkie!!! I Miss Golden Sponge Cake with Creamy Filling Goodness.

Twitch twitch

 

[bobjustbob]

Hostess is a private company and this mediation thing is going to result in nothing. The holders of the company know what the names are worth and the factories are just chump change. The land they stand on is worth more and they will get a nifty price for that. I know how this happens. I once worked for Alexander's Department Stores. It had 16 stores and owned the land. Before they went belly up an outfit bought them and converted it into a land leasing company. This was prime real estate in the NY-Metro area. One of the stores was across from Bloomingdale's on 3rd ave. Vornado bought the properties and leases them. They did the same thing with a chain called Two Guy's.

 

[bobjustbob]

News update:


Twinkies coming back.

http://www.cleveland.com/business/index.ssf/2012/12/twinkies_other_hostess_brands.html#incart_river


http://www.bizjournals.com/columbus/morning_call/2012/12/hostess-brands-likely-to-return-soon.html

 

[JasonCook78]

News update:


Twinkies coming back.

http://www.cleveland.com/business/index.ssf/2012/12/twinkies_other_hostess_brands.html#incart_river


http://www.bizjournals.com/columbus/morning_call/2012/12/hostess-brands-likely-to-return-soon.html

 

[anomaly]

I guess America still loves high fructose corn syrup, trans fats and obesity!