Hostess is Toast

[ilovemk76]

I don't think they agreed to it, I think the bankruptcy Judge ordered them to mediation.

You are correct. The judge should not be telling them they must accept mediation.

 

[dakcp2001]

I have been a RN for almost 15 years. I have never worked anywhere union and have never seen conditions as you have described. I have worked all over the south including in states not known for always providing the best work conditions. What part of the country are you in?

I am in the Southeast.

 

[pigletgirl]

FALSE. I am a nurse and my last job required 16 hour shifts with no break. Here is the USA. And neither the doctor nor the nurse should have to do that.In fact, I was not allowed to use the bathroom unless another nurse was in the building and I was the only one there. So I was breaking the rules to even go pee. And THIS is why the place is seeking out the union. AMongst other things.


You know how many more patients probably die from medication errors when tired health care workers make mistakes? Probably a lot I would venture.

Where in the world did you work? I have plenty of friends who are in the healthcare field and this is the first I've heard of this. They are mandated to take a 30 minute lunch (clock in and out...).

AND.... residents are not allowed to pull 24 hours anymore. The max is 18 hours and it has to be justified.

 

[kaytieeldr]

Losing your job will not make paying the mortgage easier.

There is greed with all parties, shareholders, executives, management, workers and the union. Until all see that it is better to compromise jobs will continue to go overseas.

No shareholders. Hostess is currently privately owned.

You are correct. The judge should not be telling them they must accept mediation.

I think the ideal goal of bankruptcy court is to prevent bankruptcy; by ordering continued attempts at mediation (which, likely, the judge legally can do), his goal is to get the company to continue to operate.

 

[tvguy]

You are correct. The judge should not be telling them they must accept mediation.

Actually, I think it is the law if they are trying to file for bankruptcy. You have to have exhausted all possible options before bankrutpcy can proceed.

Sort of what has happened to some individuals who attempted bankruptcy, because they didn't want to pay their bills, not because they couldn't afford to pay them. The Courts look at that and tell folks they can't file bankruptcy,they have to pay this bills.

 

[ilovemk76]

Actually, I think it is the law if they are trying to file for bankruptcy. You have to have exhausted all possible options before bankrutpcy can proceed.

Sort of what has happened to some individuals who attempted bankruptcy, because they didn't want to pay their bills, not because they couldn't afford to pay them. The Courts look at that and tell folks they can't file bankruptcy,they have to pay this bills.

Bimbo was in the early stages of buying the company. They own Sara Lee and they kept the factories open in the US. This is not the only US company they own.


Katie(whatever the rest is). That was a GENERAL statement about companies.

 

[foreUT]

Bimbo was in the early stages of buying the company. They own Sara Lee and they kept the factories open in the US. This is not the only US company they own.


Katie(whatever the rest is). That was a GENERAL statement about companies.

Too many anti-trust problems for Grupo Bimbo; although, I did hear that Sun Capital might purchase the company, not just the brands.

http://www.businessweek.com/news/2012-11-19/hostess-ceo-says-sale-to-grupo-bimbo-a-misconception

Hostess Brands Inc. Chief Executive Officer Gregory Rayburn said Grupo Bimbo SAB (BIMBOA) won’t be a potential buyer for the bankrupt baker of Twinkies and Wonder Bread.
“One misconception in the market is that Bimbo would be a buyer and bakery leadership told us in several plants that Bimbo would come in and buy, which is absurd,” Rayburn said today in an interview with Bloomberg Television.

Rayburn cited Bimbo’s agreement with the U.S. Justice Department to sell some Sara Lee brands in order to complete its acquisition of Sara Lee’s North American bakery business.

“Due to antitrust, it would never happen,” Rayburn said.

 

[A_Princess'_Daddy]

No shareholders. Hostess is currently privately owned.

I think the ideal goal of bankruptcy court is to prevent bankruptcy; by ordering continued attempts at mediation (which, likely, the judge legally can do), his goal is to get the company to continue to operate.

There are shareholders in the private equity funds that own Hostess. Although depending on how it's structured, they could also be called members or partners. The underlying theory is the same, however, that the owners of the PE funds demand a return, often at the expense of the employees.

 

[tvguy]

Bimbo was in the early stages of buying the company. They own Sara Lee and they kept the factories open in the US. This is not the only US company they own.


Katie(whatever the rest is). That was a GENERAL statement about companies.

Actually, Bimbo closed their Stockton Bakery last week, the old Sara Lee bakery. It was a justice department requirement for the sale to go thru. They only bought the name Earthgrains, not the bakery.

 

[foreUT]

There are shareholders in the private equity funds that own Hostess. Although depending on how it's structured, they could also be called members or partners. The underlying theory is the same, however, that the owners of the PE funds demand a return, often at the expense of the employees.

Otherwise, the fund would be referred to as a charity.

 

[mickeysgal]

Otherwise, the fund would be referred to as a charity.

Just read that mediation failed.

 

[S. C.]

If I said what I think of this I would be banned.



Hostess is seeking a judge's OK to pay top execs $1.8 million in bonuses as the company winds down.


UPDATED 6:15 PM ET: Hostess Brands, the bankrupt maker of Twinkies snack cakes, received court permission to wind down its 82-year-old business on Thursday but revealed "furious" interest in its iconic brands from potential buyers.

New York Bankruptcy Court Judge Robert Drain approved the final orders that cleared the way for the company to begin selling its assets, everything from brands such as Ding Dongs and Twinkies to baking equipment and real estate.

"It's undisputed they will be worth more moving down this path," Drain said of the wind-down plan.

Around 110 potential bidders have contacted the company about bidding for at least part of its business, and 70 had enough interest to sign confidentiality agreements, Hostess' banker told the hearing in White Plains, N.Y.

Joshua Scherer of Perella Weinberg, who was hired by Hostess to sell its assets, said that six potential bidders have hired large investment banks to help them.

"It's very significant because it indicates to me that not only are these buyers serious, but they are expecting to spend substantial sums," said Scherer. He said the liquidation could raise $1 billion.

Scherer described the level of incoming calls from potential bidders as "fast and furious." Interested parties include large national retailers and overseas buyers that wanted to bring Hostess brands to India, he said.

By early January, the company expects to have initial bids for its various brands, which will then be put to auction.

Hostess Brands also is asking for a judge's approval to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

The company says the incentive pay is needed to retain the 19 corporate officers and "high-level managers" during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The bonuses would be in addition to their regular pay.

The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month.

Hostess is seeking final approval for its wind-down, which was approved on an interim basis last week.

The company's shuttering means loss of about 18,000 jobs.

In court Thursday, an attorney for Hostess noted that the company is no longer able to pay retiree benefits, which come to about $1.1 million a month. Hostess stopped contributing to its union pension plans more than a year ago.

The company's demise came after years of management turmoil, with workers saying the company failed to invest in updating its products. In January, Hostess filed for its second Chapter 11 bankruptcy in less than a decade, citing steep costs associated with its unionized work force.

Although Hostess was able to reach a new contract agreement with its largest union, its second biggest union rejected the terms and went on strike Nov. 9. A week later, Hostess announced its plans to liquidate, saying the strike crippled its ability to maintain normal production.

Information from the Associated Press and Reuters was included in this report.

Related story: Bankruptcy judge OKs Hostess liquidation