A Hostess Brands Inc. union and a pension fund asked the judge overseeing the company’s bankruptcy to appoint a Chapter 11 trustee to wind down the maker of Twinkies and Wonder Bread.
“A Chapter 11 trustee must be appointed to oversee the debtors’ orderly liquidation and protect the best interest of creditors,” according to a filing today in U.S. Bankruptcy Court in White Plains, New York, by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and the Bakery and Confectionery Union and Industry International Pension Fund.
Hostess, based in Irving, Texas, last week won interim approval from U.S. Bankruptcy Judge Robert Drain to shut down and start selling assets after last-minute mediation with the bakers’ union failed to resolve a contract dispute, leaving more than 18,000 jobs at risk.
Drain rejected a request by U.S. Trustee Tracy Hope Davis to convert the Hostess case to a Chapter 7 liquidation from Chapter 11, which would have handed control over the asset sales to a conservator. Conversion “would be a disaster,” Drain said.
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