- Hostess Brands Inc and the Confectionery, Tobacco Workers and Grain Millers International Union agreed with lenders on Monday to enter private mediation, potentially averting liquidation.
- Bankruptcy Judge Robert Drain of the Southern District of New York urged the parties to go into mediation in an effort to save 18,000 jobs.
- Flowers Foods, Pepperidge Farm owner Campbell Soup Co and Grupo Bimbo have been named as potential buyers if Hostess sells its assets.
From the article:
"... '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 was seeking permission to liquidate its business, claiming that its operations have been crippled by a bakers strike and that winding down is the best way to preserve its dwindling cash. Hostess suspended operations at all of its 33 plants across the United States last week as it moved to start selling assets. ..."