Basic logic tells me this is pure bullshit. Either a company makes a profit or not. How much cash reserves they have doesn't affect if they are making a profit unless they are relying on interest income. And then if they are they don't need the business. Just close it and make money on interest.
Hostess was unprofitable. The judge reviewed the bankruptcy and he ordered a pay cut but in way of compensation the workers would get a stake in the company. The union refused the offer and now they are all out of work.
Bottom Line: The union played chicken and lost.
Or, if Michelle didn’t veto it, the government would put a billion dollars into Hostess, guarantee the pensions of union members, and give ownership of the company to the unions.