Skip to main content

View Diary: Private equity-owned Hostess blames striking workers as it liquidates (263 comments)

Comment Preferences

  •  Without the hedge funds? Yes, I think so. (11+ / 0-)

    Hedge funds target union industries, load them up with debt, bankrupt the company, and then say "We can't afford these bloated union salaries".

    If the hedge fund parasites were sent packing, and if all their debt was forgiven, I have no doubt Hostess would be able to go on being profitable while paying union wages.

    But the company can't pay the union wages and the Wall Street vultures at the same time.  That's what's happening here.

    •  Load them up with debt and take the money out (2+ / 0-)

      either as gigantic salary payments or in special cash distributions to partners.

      The BK court is in it to protect the interests of creditors, not the owners.   They'll liquidate the assets to pay off the creditors leaving the hedgies to keep the loot they've already taken.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site