Bakers' union seeks Chapter 11 trustee for Hostess liquidation
November 28, 2012 12:42 PM EST
The bakers' union of Hostess Brands Inc asked the judge overseeing the company's bankruptcy on Tuesday to appoint a Chapter 11 trustee to ensure an orderly wind-down.
In a filing in the U.S. Bankruptcy Court in White Plains, N.Y., lawyers for the union and a related pension fund said they objected to allowing "incumbent management" to supervise the company's liquidation.
Hostess won permission from Judge Robert Drain last week to begin closing down, although it has expressed hope that many of its widely known brands, including Twinkies and Wonder Bread, would survive in the hands of new owners.
The liquidation began after the judge failed in a last-ditch effort to resolve the dispute between Hostess and the striking Bakery, Confectionery, Tobacco and Grain Millers Union, which had refused to accept new wage and benefit cuts after earlier give-backs.
The union asked Drain to rule on its request for a trustee at the next court hearing on Thursday.
In papers filed opposing the request for an expedited decision, lawyers for Hostess said they believed there were "serious legal deficiencies" in the union's motion for a trustee.
Drain has already rejected a request to convert the case into a Chapter 7 liquidation that would be overseen by a trustee, calling it a "disaster" because of the potential delay in selling the company's assets.
Hostess decided to liquidate on November 16, saying it was losing about $1 million per day after the union, representing close to one-third of its workers, went on strike a week earlier.
The 82-year-old company filed for Chapter 11 protection on January 11, its second bankruptcy filing in less than three years.
(Reporting by Joseph Ax; Editing by Paul Tait)
Most Popular Slideshows
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Google Nexus 6 Release Date on Q4 2014 Confirmed by T-Mobile Featuring Wi-Fi Calling
- Samsung Galaxy Note 4 vs. BlackBerry Passport — Specifications, Features, Release Date And Price Showdown
- 3 Signs Apple iPhone 6 Could be in Short Supply Following its Sept 19 Release Date
- Australia Actively Rallying Support For International Coalition Against ISIS
- iOS 8 Jailbreak Release Update: Pangu Devs Will Outrace Evad3rs in Rollout of iPhone 6, iPad Unlocker
- Micromax Canvas A1 Vs Spice Dream Uno Vs Karbonn Sparkle V: A Choice On Which Android Is The Best
- Australian Liberals Urge Expat Kiwis To Favour John Key In New Zealand Election