Teamsters OK CBA, save Hostess from liquidation
Bankrupt Hostess Brands Inc. avoided liquidation on Friday after the International Brotherhood of Teamsters voted to accept the maker of Twinkies and Wonder Bread's modified collective bargaining agreements.
Even so, the company still faces some obstacles since its Bakery, Confectionery, Tobacco Workers and Grain Millers International Union voted to reject the modified CBA late Sept. 14.
Hostess Brands CEO Gregory Rayburn told The Deal Pipeline the debtor will petition Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York in White Plains to set a hearing on Oct. 3 to enforce the terms of the modified CBA on the union through Section 1113 of the Bankruptcy Code.
If the Section 1113 relief is granted at the hearing, it will enable Hostess Brands to avoid liquidation and successfully emerge from Chapter 11, a company statement said....MOREHT: peHUB
Previously:
Ding Dong: "Twinkies Prepping for Bankruptcy: Everything You Need to Know"
