Say Goodbye to Twinkies and Wonderbread

[patteeu]

Originally Posted by BigRedChief

They worked for 30 years to get that pension. Now what are they going to live on?.....unemployment and the taxpayer dime. While the executive gets a 300K raise and the junior executives get raises for the fantastic job they did running it into the ground.

You see nothing wrong with this picture?

If the judge who has all the information approves it, why should I come to a different conclusion based on almost no information?

[DaFace]

Originally Posted by patteeu

If the judge who has all the information approves it, why should I come to a different conclusion based on almost no information?

Though it sounds awful and I don't blame the workers for being pissed, I agree with pat on this one. If you literally just fold up shop, there's even less money in the company to pay off debts and salvage whatever they can of those workers' pensions. It sounds like a lot of money to me for sure, but if they think they can save $200k per month by paying that guy $150k per month, they're making positive progress for everyone even if it doesn't seem that way.

[Jenson71]

Originally Posted by DaFace

Though it sounds awful and I don't blame the workers for being pissed, I agree with pat on this one. If you literally just fold up shop, there's even less money in the company to pay off debts and salvage whatever they can of those workers' pensions. It sounds like a lot of money to me for sure, but if they think they can save $200k per month by paying that guy $150k per month, they're making positive progress for everyone even if it doesn't seem that way.

Yeah, I guess there's not much more to do. I guess this is cheaper than paying a receivership to handle this (or maybe receiverships do not make those kinds of decisions).

Or, I will volunteer to do the job for 140K per month, and I will follow all the judge's decisions for who has priority of the remaining assets.

[BigRedChief]

Originally Posted by Literature

Yeah, I guess there's not much more to do. I guess this is cheaper than paying a receivership to handle this (or maybe receiverships do not make those kinds of decisions).

Or, I will volunteer to do the job for 140K per month, and I will follow all the judge's decisions for who has priority of the remaining assets.

Letting the executives that ran the company into the ground to profit while the working stiffs lose their pensions? In what world does that make sense?

[Jenson71]

Originally Posted by BigRedChief

Letting the executives that ran the company into the ground to profit while the working stiffs lose their pensions? In what world does that make sense?

As mentioned, in a world where we care about creditors and think the old executives are best able to handle the assets creditors are owed. Are the old executives taking advantage of the situation? Yeah, most likely. What is the cheaper alternative for wind-up management? Is it the receivership? I don't know.

[tk13]

More fun with Twinkies.

Hostess Workers' Pension Money Diverted For Other Uses: Report

Hostess Brands acknowledged for the first time in a news report Monday that the company diverted workers' pension money for other company uses.

The bankrupt baker told The Wall Street Journal that money taken out of workers' paychecks, intended for their retirement funds, was used for company operations instead. Hostess, which was under different management at the time the diversions began in August 2011, said it does not know how much money it took.

"It's not a good situation to have," Hostess CEO Gregory Rayburn told the WSJ.

"Whatever the circumstances were, whatever those decisions were, I wasn't there," Rayburn added. As the founder and owner of Kobi Partners, a restructuring advisory firm, Rayburn was appointed acting CEO in March 2012.

Hostess Brands, which filed for bankruptcy for a second time in January, started liquidating its operations in November after the bakers' union refused to take another pay cut and went on strike. The liquidation will leave about 18,000 workers without jobs.

http://www.huffingtonpost.com/2012/1...n_2271868.html

[BigRedChief]

Originally Posted by tk13

More fun with Twinkies.



http://www.huffingtonpost.com/2012/1...n_2271868.html

This is just BS. When this first happened it was all about greedy unions. And now all this shit about management playing fast and loose with the law, money and ethics is coming out.

Someone should go to jail.