Hostess Brands Inc., makers of the infamous Twinkie has
asked a bankruptcy judge to cut some its union obligations stating it is the
only way for the company to emerge from bankruptcy.
Union bosses issued a statement saying that Hostess is
trying to “bully” its way out of obligations to its employees, according to the
Hostess filed for bankruptcy protection earlier this month
amid slipping sales and competition from other bakers like Entenmann’s. The
company just emerged from a previous restructuring plan from three years ago.
Hostess says that their financial problems are also due in
part to their obligations to employees and retirees. They stated that during
their last bankruptcy proceeding they were not given sufficient relief from
Union bosses assert that Hostess employees already
sacrificed a great deal during the previous bankruptcy. Unions make up 75
percent of Hostess’s 19,000 employees. The Teamsters added they are negotiating
with Hostess over employee benefits. A court date is scheduled for Monday.
Bankruptcy attorneys help companies figure out ways to become financially solvent
again. Not only do they need to reduce their obligations to creditors but to
employees also if they want to survive.
Any company that needs to relieve their overwhelming debt
can consult with a bankruptcy lawyer
to determine which structure will work form them. Bankruptcy attorneys have the knowledge and the expertise to get a
company out of the red.