Skip to comments.Judge Suggests Mediation to Save Hostess; Sides Agree to Talk.
Posted on 11/19/2012 12:12:42 PM PST by Perdogg
Dow Jones is reporting that a bankruptcy judge is urging mediation to save Hostess from liquidation. WSJ will have more to come as it comes out of the courtroom.
Heres an update from bankruptcy reporters Jacqueline Palank and Rachel Feintzeig
A bankruptcy judge Monday asked whether he should preside over mediation between Hostess Brands Inc. and its striking union to avoid pulling the plug on the baker of Ho Hos, Twinkies and Wonder Bread.
(Excerpt) Read more at blogs.wsj.com ...
The Bakers Union thought that Hostess was bluffing. The Union was wrong and they will now beg to go back to work.
If I could make the rules, I would encourage Hostess to take the workers back, WITHOUT the Union!
Oh, with Obama as president they can probably collect unemployment until the Americans are re-elected again.
economics wont either
The unions have compromised quite a bit over the last few years. How about the lenders compromise a bit on the $700 million in debt and their fees?
Particularly when the Teamsters was the largest union involved. The bakers union was smaller.
don’t borrow money, if you do then try to get a better deal BEFORE you take a loan.
Or, sympathetic parties could offer to take their savings, use it to buy some of that debt, then tell Hostess they will eat the debt to help the company out.
That would embarrass those greedy capitalists, wouldn't it?
It wasn't the unions that borrowed money.
And it looks like Sun Capital wants to buy Hostess and keep the existing plants and workers operating.
The co-CEO for Sun Capital said:
"I think that we could offer a slightly better, more labor-friendly deal than what was on the table last week," says Sun co-CEO Marc Leder, in an interview with Fortune. "We also think that one point the unions have made is that there hasn't been a great amount of reinvestment in the business. We've found that investing new capital into companies like this can be very positive for brand, people and profitability... We would look to invest in newer, more modern, manufacturing assets that would enable the company to become more productive and to innovate."
If hostess caves to the union I can see them getting the JC Penny treatment by consumers.
I often bake at home, but I have never been able to match that Hostess Chocolate Cupcake with cream filling that my mind craves whenever I just happen to think about them. LOL.
Continental Baking has been hurting for years.
Bankrupt them ans sell off the assets.
At least if Bimbo buys them the union can go pound sand and the quality will be as good or improve!
“What the judge cannot do is force the owners or investors to toss in more money than they already have (at least to my knowledge of BK law).”
The judge also can’t force their suppliers to sell them ingredients.
Wow. I’m shocked so many in here are on the same page as the union goons and want Hostess to go down. So much for the faux sympathy that was expressed for the thousands of employees now out of work.
Damn. I should go back and study bankruptcy and practice in that field.
> I can’t believe that there are so many freepers into store bought sugary fatty creations.....doesn’t any body bake at home anymore?
I’ve honestly been wondering this myself lately. I mean, I don’t begrudge someone the right to eat whatever they want, but I swear at the grocery store the twinkie shelf is just collecting dust year after year. I haven’t had one in 30-40 years, easily.
Have you noticed that the entitlement generation (twenty and thirty somethings)is much more “pudgy” and out of shape than those of us who graduated from high school in the seventies?
Oh anyway, here is the only thing the NY Times is good for:
Step foot in a JCPenney just once after the public their public service announcement. Haven’t been back in ages.
Talking to a guy the other who told me he was in the store the other day. Jeans on sale: 2 for $5.00. How’s that announcement working out for you, JCPenney?
Can the judge force them to mediate with the union? Thats my impression.>>>>>>>>>>>>>>
Union law is such a hodge podge from state to state. Maybe the judge can order binding arbitration, but the funny thing is that in this case it would be the same as seling the business to the Union. Get the Union to put up its pension funds as colateral and let the Union RUN the business and see if they can save it.
If not, tell the Union to take a hike, and order it back to work.
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