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View Diary: BREAKING: Hostess Brands to close as revenge for the striking workers standing up for their rights (351 comments)

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  •  Time will tell (2+ / 0-)
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    coffeetalk, sethtriggs

    What the specific details of Hostess's debts are.  Generally speaking, in a liquidation bankruptcy the money owed to workers (salary, pension funding obligations, etc.) has a higher priority for payment than unsecured creditors, shareholders, and investors.  If that's what is going on, it doesn't make sense for the people who own Hostess to liquidate the company as "revenge" against workers, since the workers would be paid before they saw any money back on their investments, and in most liquidations investors take a total losses of their investments.   Of course there are lists of ways to try and game that system.

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