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View Diary: Hostess took workers' pension money to fund itself (158 comments)

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  •  No. (13+ / 0-)

    The judges decide to read the laws this way. But it's bullshit. If it was just a matter of applying a preset formula, they would be call "bankruptcy clerks", not "bankruptcy judges". They have a lot of leeway, loads of it, to re-prioritize claims, to recharacterize them, in particular to throw non arm-length claims into equitable subordination.

    The liquidation of Hostess Brands was most likely inevitable. By all appearances, the company was not viable as a going concern. So I don't have a beef with the sale of its assets.

    But, given how rottenly the company was run since 2009 at the very least, the judge had every reasons to order the sequestration of the proceeds and to call on a forensic accountant to comb through the last few years of operation.

    When a company is so badly run, it's by design, 99% of the time. It reeks of bankruptcy for profit. Open the books and I'm pretty darn sure you'll find self-dealing and asset stripping all over the place.

    Hey, I even have a name for the judge if that dunce is really at a loss for ideas. How about Bill Black ? I'm sure rotten private equity entrepreneurs and shadow bankers would be a nice break for him from rotten commercial and investment bankers.

    I deal in facts. My friends are few but fast.

    by Farugia on Mon Dec 10, 2012 at 05:11:41 PM PST

    [ Parent ]

    •  This is the Romney style finance plan. (0+ / 0-)

      He has been doing it all over the country.

      Where do you think he/Bain gets the money when he "buys" a company. He "buys" into it, takes it private by issuing debt — junk bonds — based on its balance sheet, issues mega dividends, that sucking noise in the money draining out of the company.

      Then they let it go bankrupt. Surprise, surprise, there are no assets in the pension fund.

      Why are you so surprised?

      This is the Romney playbook.

      I'm asking you to believe. Not in my ability to bring about real change in Washington ... *I'm asking you to believe in yours.* Barack Obama

      by samddobermann on Tue Dec 11, 2012 at 02:20:53 AM PST

      [ Parent ]

    •  *eyebrows* (1+ / 0-)
      Recommended by:
      The judges decide to read the laws this way.
      You're claiming that what Hostess did, what thousands of companies have been doing for 35 years, is actually illegal, and that hundreds of judges judge just up and said "OK!". For 35 years. Tens of thousands of times. In every county of every state across the nation. Look again at how that sounds.

      It is the laws that are the problem. They were broken under Reagan. Legalizing bankruptcy for profit was one of several very specific goals.

      The only solution is to correct the laws, to make this illegal again, like it was before the laws were corrupted under Reagan. This won't stop until that happens.

      "What could BPossibly go wrong??" -RLMiller "God is just pretend." - eru

      by nosleep4u on Tue Dec 11, 2012 at 08:49:13 AM PST

      [ Parent ]

      •  Hundreds of judges judge just up and said "OK!"... (0+ / 0-)

        ... amply helped by US trustees and federal prosecutors who never, ever see any evil with barely ever any criminal referral issued and even fewer prosecuted or even investigated when a trustee, mirabile dictu, brings himself to issue one.

        And no, it's not a problem of laws. It's a problem of personnel and accumulated "jurisprudence".

        I deal in facts. My friends are few but fast.

        by Farugia on Tue Dec 11, 2012 at 11:22:06 AM PST

        [ Parent ]

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