Breaking: Hostess, unions agree to mediation

[trailmonkee]

http://my.chicagotribune.com/#story/chi-judge-hostess-union-agree-to-mediation-20121119/

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 preferred it to the 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 is seeking permission to liquidate its business, claiming that its operations had been crippled by a bakers strike and that winding down operations is the best way to preserve its dwindling cash

[democrattotheend]

1. Hopefully they will be able to resolve it

Much as I find the company's actions deplorable, I don't want to see all these workers lose their jobs.

[Kingofalldems]

2. If they make it back sales will be through the roof

[2pooped2pop]

3. I hope this works for the worker's sake.

But wonder may now join my pile of bullshit that I don't use anymore. Off to the Chuck Norris, Crazy Eastwood crap pile with Wonder.

Wonder how much of this grandstanding was just a ploy to scare the worker's and get their way?

[MFM008]

4. hurray

there is hope for twinkies and morbid obesity yet!!

[quinnox]

5. well, things are looking up

the twinkie may yet still have a future ahead.

[Gin]

6. Geez.....I thought it was a done deal...and the pensions were in the hands

Of the PBGC......if it gets settled....IMO.....this will delay the inevitable.

[Raine]

7. Hopefully they can reach an agreement that doesn't screw the workers. nt

[Bandit]

8. That is not going to happen

The workers are going to have to take a substantial hit...AGAIN... They already went through this a few years ago and the workers gave up a lot.. that is why they were not about to do the same thing all over. Large bonuses were paid to executives and pay increases as well while the workers took reductions in pay and benefits...I feel the same thing is going to happen again.. As soon as the Judge said he wouldn't allow them to go into Chapter 11 but chapter 7 instead so they couldn't hand out bonuses, they decided they would try and work with the Unions... They could do better IMO.

[DirkGently]

9. Appears they were afraid they'd be converted to Ch. 7

http://www.bloomberg.com/news/2012-11-19/hostess-liquidation-needs-control-by-trustee-u-s-says.html

"Oh, a Ch. 7 trustee? Wellllll.... maybe we haven't exhausted all of our options just yet."