Sorvino Comments on Hostess Brands Bankruptcy Mediation
Management at Hostess Brands and leaders of the Bakery Workers union head to mediation on Tuesday to determine if the company and its 18,500 jobs can be saved. If not, Tuesday's session will prove to be only a slight detour on the way to liquidation for the maker of such iconic products as Twinkies, Wonder Bread and Drake's snacks.
The mediation session was ordered by U.S. Bankruptcy Court Judge Robert Drain, who will also oversee the meeting. He said he wanted to try to do everything he could to try to find a deal before he ruled on the company's motion to liquidate.
Experts say it is extremely rare for a bankruptcy judge to refuse to sign off on a company's motion to liquidate. Heidi Sorvino said companies typically have close to an absolute right to liquidate. And Drain is set to rule on the company's liquidation motion Wednesday morning if there is not progress made in mediation Tuesday afternoon.
If you would like to receive additional news alerts, event notifications, or correspondences pertaining to this and other industry-specific topics, please sign up by visiting the Contact Us page. Be sure to provide your contact information, including email address, and list the areas of practice or industries for which you would like to receive information.
This correspondence should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult a lawyer concerning your own situation with any specific legal question you may have.