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View Diary: Hostess Workers are Winning... (149 comments)

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  •  Thanks again as you led me to wonder (0+ / 0-)

    Again Ch 11 is . . . well complex.

    See Hostess' Windown Plan: (I am guessing this Bankruptcy is costing them millions, this is one doc preepared by about the most expensive firm in the Country (Jones Day) http://chapter11cases.com/...

    But I guess curiousity is a good thing for some lawyers. So while I don't understand some previous experience gives me a chance to note.

    I had to set up a CH 11, so really learn it in 3 months. A specialty that is all some do.

    It was a long time ago, I never did it as something intervened. But I will note some things I re-read, and are interesting (did not read enough about this one).

    This seems very unsavory. At least as someone who doesn't stay with Ch 11.

    First (not a class action attorney), but if the pension fund is overseen by someone, and they lent it to a "Bankrupt Company" the intentions of the COmpany (and closesness of how it was done), to me strike me as really questionable, and perhaps a class action (not a class action attorney).  See http://www.icemiller.com/...

    Also, I do not know how Strategic Bankruptcies have evolved. But looking at Continental's in the 80's it was to shed Union Agreements and pitted Bankruptcy Theory against Labor Law (as you can't break a CBA). At that time, it seemed like a "bad faith" bankruptcy. To be able to organize to get an advantage like they did. You may want to read about it. I don't know if since it's gone to the SCOTUS (whether a CBA is an Executory contracy or a test, an issue in their CH 11).  

    Now here, you seem to have the same thing on the front end. Shedding Union Agreements. But at the back it seems to be to protect high up equity who wants to liquidate. I don't know if that's common, or allowed, but if Continental was unsavory in the 80's this seems worse (continental had also lost money for several years, more than Hostess). So I really wonder about how they can do this.

    Other things that stick out to me is the Lenders seem behind? Generally they aren't unless favorable to them.

    Idk, I hope good Labor Law/Pension and Profit Sharing Firms are looking at and good luck.

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