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Sorvino Comments on Hostess Brands Bankruptcy Mediation

CNN Money
November 20, 2012

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.

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