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Goodbye Hostess

Tyler Durden's picture




 

Everyone loses:

  • HOSTESS JUDGE APPROVES MOTION TO WIND DOWN COMPANY
  • HOSTESS WINS APPROVAL TO CLOSE AND BEGIN SELLING ASSETS

Next up: the Twinkie economy.

Fom Leveraged Loan:

U.S. Bankruptcy Judge Robert Drain this afternoon approved Hostess Brands’ emergency wind-down plan, as well as an amendment to its debtor-in-possession credit agreement that will allow Hostess to access the full amount of its $75 million DIP loan during its liquidation.

Drain also denied a motion filed by the U.S. Trustee to convert the case to Chapter 7, though he did not rule out the prospect of a conversion at a later date.

Hostess returned to the bankruptcy courthouse in White Plains, N.Y., this morning after a last-minute mediation yesterday between the company and its main bakers’ union failed to produce a settlement to halt liquidation of its assets. The hearing began Monday afternoon, but was delayed shortly thereafter to give the company and the Bakery, Confectionary, Tobacco and Grain Millers Union a final opportunity to engage in mediation to avert the strike the BCT began last week. But by Tuesday evening, Hostess announced that the mediation was “unsuccessful.”

Judge Drain opened today’s hearing with a brief, private chambers conference to discuss the mediation, the details of which remain confidential.

Back in open court, Hostess financial advisor Joshua Scherer, of Perella Weinberg, took the witness stand to discuss the company’s failed efforts to sell the company as a whole, and the status of its newly launched liquidation strategy.

During its Chapter 11, Hostess fielded six bids for the sale of the company as a whole, none of which passed muster, Scherer said.

In the past five days, however, since Hostess officially launched its liquidation process, the company has received “a flood of inquiries,” said Hostess lawyer Heather Lennox, of Jones Day. The company expects to file a number a number of stalking-horse bids for its assets within the next few weeks, she said.

“The number of inbound calls has been surprising, on a number of fronts,” Scherer said. Those inquiries fall into four “buckets,” he explained. Offers have come from regional bakeries, national competitors, customers (such as Wal-Mart, Kroger and Giant Eagle), and a fourth catch-all category, including large consumer products companies. Scherer said the liquidation sale has generated “very significant interest” from international buyers as well.

Many of the buyers were uninterested in the assets when Hostess was weighed down by its union liabilities, he said. “We have very significant momentum right now with, from a selling perspective, positive press,” Scherer said. “It’s critical to maintain momentum and a competitive dynamic.”

“Every day our product is off the shelf, it’s diminishing in value. Our customers get used to selling goods without our brands, and the end-users learn to live without Twinkies and Wonder Bread.”

On the stand, Hostess CEO Gregory Rayburn said he needs to terminate about 15,000 employees today so that they can collect unemployment benefits. Drain approved an employee retention plan that would keep about 3,200 employees on the job during the wind-down process.

 

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Wed, 11/21/2012 - 19:13 | 3003495 CCanuck
CCanuck's picture

17980 people out of work because the top 20 idiots at the helm, are inept overeducated greedy fucking morons.

Isn't that why the boss makes 2.5 million a year?? Be cause he can run the company, right?

The overpaid bakers did thier job, the drivers, all production workers did....you can tell, look at the size of the average hostess consumer.

The CEO and the other 20 lettered cunts ran the fucker into the ground, and still taking the pay and raises during restructuring.

What the excuse for the admin? They get multiples more pay to make throughput happen? Get golden parachutes because of thier talent, ability, education..etc..etc

Fuck every suit in that corp....real fucking hard, it was their greed that killed Hostess.

Cc

Wed, 11/21/2012 - 21:07 | 3003698 hawk nation
hawk nation's picture

How about the sellout politicians who have caused benefits to skyrocket so they could buy more votes from the electorate

ps businesses are in business to make money not support the corrupt union management

Wed, 11/21/2012 - 22:54 | 3003842 Flatchestynerdette
Flatchestynerdette's picture

It should be NOTED that the Baker's union chief had his salary go from $179,000 to $262,000 and the guy had his nephews working for the union at a $78k per year clip.

And you're so worked up about the guys who came in January 1st of 2 years ago to try and restructure the company when the company had been in Bankruptcy - oh since 2004, and this new group was hired by the BOARD to try and get it out of bankruptcy.

Don't blame the CEO of the company. He was put there just recently and didn't run the company into the ground. The company was ALREADY IN THE GROUND. He was hired to dig it out of the ground if he could but because of the intransigence of the BAKERS UNION GOONS at the very end, they couldn't do it.

Every other union ponied up something to save that company and get it OUT OF BANKRUPTCY except the bakers union. I'd be so proud to put 18,500 people out of work if I were the 3000 fucking bakers today.

and as for the compensation you keep rattling on about regarding re: the CEO? That's for staying there and working for the next 8 months with those 20 other people to mothball those factories, sell off the equipment, and do legal work. They still need to get paid while working. The union can't stop them from doing their jobs as required by the BOARD. Also, the deferred compensation is for the past 2 years that they've been working at cut rate monthly salaries. So when the company's finally piecemeal sold off, and they get some MONEY INTO IT INSTED OF DEBT, the CEO, the secretaries, the legal department, and the managers will finally get paid what is the going rate. That they've taken only $2000 per month instead of the $5000 per month to try and keep the company going and get it out of bankruptcy to make money and solve the debt issue is a testament to their willingness to cooperate.

Besides which - I guess you DIDN'T UNDERSTAND THAT THE MANAGEMENT OF THE COMPANY WAS TAKING THE 8% HIT PER YEAR ON SALARIES AS WELL AS THE WORKERS. It was all in. No, everyone on the union side wants to ignore the fine print of this 'try to save the company' and instead focus on just the usual BULLCRAP - THE CEO/MANAGEMENT IS BAD AND LABOR IS GOLDEN.

Yeah, $262k for the Labor Boss off of the dues the union person pays vs. what does a line baker make?

How ya feelin' now?

Thu, 11/22/2012 - 03:06 | 3004061 CCanuck
CCanuck's picture

I have no illusions about Labor, I stated  they are overpaid, and add, probably underworked as well. 

What I do know is that some overpaid suit has the direction of the company in his control.

The company signed everyone of those previous contracts, gave the union what they wanted, nobody put a gun to thier head and forced them to give the bakers more, did they?

Now they want to shave 8% off some number that multiples more stupid that any baker, driver, line worker's salary. And claim to be taking a big hit with the common worker or baker,,,ya right I am moved by them willing to put that out there given thier stellar performance.

Is there question of performance from the "workers" or are they deemed to be doing their jobs? Its laid out in the contract what each person's job requirements are right? Is the company failing because of production issues related to job performance?

There seems to be many questions about the "investments" and Accounting, and pay packages for employees wearing suits.

That speaks to the reasons for failure, all those big salaries is because the suits are that much more responsible for the operation of the company. Thats why they get the big bucks right; to take the burden of failure, just as they collect bonuses for great performance.

IMHO It seems to me they have failed and nothing gets them off the hook, they are responsible for the final decisions about how the company is run not the union. 

Wed, 11/21/2012 - 19:16 | 3003505 Seasmoke
Seasmoke's picture

that is EXACTLY why no moron should join a union, because in the end everyone is going to be out for ME

Wed, 11/21/2012 - 17:05 | 3003253 azzhatter
azzhatter's picture

Hilary looks like she's been gorging on Twinkies lately. What a lard ass she has become

Wed, 11/21/2012 - 20:46 | 3003653 Manic by Proxy
Manic by Proxy's picture

Well, sure, that's the low-hanging fruit. But lardHEAD. That's the story without being news.

 

Wed, 11/21/2012 - 17:09 | 3003261 earleflorida
earleflorida's picture

truly, a sad day for homer j. simpson... my condolences homey

Wed, 11/21/2012 - 22:26 | 3003800 CaptainObvious
CaptainObvious's picture

Let them eat donuts!

~M. Antoinette, Bakery, Confectionary, Tobacco and Grain Millers International Union local #666

Wed, 11/21/2012 - 17:15 | 3003276 mrdenis
mrdenis's picture

the Government builtl tha company so it sure as hell can make it disappear

Wed, 11/21/2012 - 17:15 | 3003280 riphowardkatz
riphowardkatz's picture

the private equity firm that scoops up the assets uninheindered by 1 billion in pension liablities may not lose.

Wed, 11/21/2012 - 20:41 | 3003647 ThisIsBob
ThisIsBob's picture

Something for Mitt to do.  Piece of cake.

Wed, 11/21/2012 - 17:25 | 3003307 formadesika3
formadesika3's picture

“Every day our product is off the shelf, it’s diminishing in value. Our customers get used to selling goods without our brands, and the end-users learn to live without Twinkies and Wonder Bread.”

Life without Twinkies and Wonder Bread? Oh the humanity!

Wed, 11/21/2012 - 17:25 | 3003308 Aurora Ex Machina
Aurora Ex Machina's picture

Can't believe no-one has done this yet:

 

Ode to twinkies, you got a purty mouth

Wed, 11/21/2012 - 17:25 | 3003309 batushka
batushka's picture

goy yum

Wed, 11/21/2012 - 17:34 | 3003328 devo
Wed, 11/21/2012 - 18:18 | 3003395 Aurora Ex Machina
Aurora Ex Machina's picture

Already defeated.

~There's a strong push against this across the board, from the left to the pimpled nerds of Reddit, to Google.

 

Network with them.

Wed, 11/21/2012 - 17:59 | 3003368 holdingontomypants
holdingontomypants's picture

15,000 employees approved to be fired today and I bet we won't see those numbers reflected in next weeks labor reports or the monthly ADP reports. Those numbers will be missing in action. I hope these idiots enjoy their $1,000 monthly check and taking 5K a month from their savings accounts to maintain their lifestyle.   

Wed, 11/21/2012 - 18:30 | 3003430 dark pools of soros
dark pools of soros's picture

right, since if they didn't have them unions they could of been ran as good as HP!! Or Worldcom!!  or Enron!!  or the hundreds of other companies that are being bled dry by extortion executives without unions

 

 

Wed, 11/21/2012 - 18:03 | 3003379 are we there yet
are we there yet's picture

The good news is that the shelf life of a twenkie is so long, that liquidation could go on for years and any twenkie inventory is still edible.

The 3000 bakers union baked all 15000 employees in a twenkie eat twenkie world.

Wed, 11/21/2012 - 18:26 | 3003419 dark pools of soros
dark pools of soros's picture

"and the end-users learn to live without Twinkies and Wonder Bread.”"

Fat-World Problems

Wed, 11/21/2012 - 18:29 | 3003428 alangreedspank
alangreedspank's picture

Let's just focus on the nutrional elements of Twinkies instead of how unions can fuck up firms.

Wed, 11/21/2012 - 18:38 | 3003449 knicks3005
knicks3005's picture

Cue Q' Lazzarus.

Gooooooodbye Hooooostess.

 

Would you fuck me? I'd fuck me.....i'd fuck me hard.

Wed, 11/21/2012 - 19:15 | 3003496 Burticus
Burticus's picture

Judge Drain drains Hostess' assets and Gen. Betrayus...  You just can't make this $#!+ up.

Never fear, Twinkies will re-appear...after a buyer picks up Hostess' assets, sans union liabilites and contracts, for CentiFeRNs on the FeRN, and puts them back into productive service.

Wed, 11/21/2012 - 21:12 | 3003707 jim249
jim249's picture

And the price of Twinkies will double.

Wed, 11/21/2012 - 19:15 | 3003502 Jim in MN
Jim in MN's picture

 

 

Twinkies are great in many ways.

 

But not liquified.

 

RIP

Wed, 11/21/2012 - 19:16 | 3003508 Jim in MN
Jim in MN's picture

And, union bashing is for cretins.

Just sayin'.  Not a member.

Wed, 11/21/2012 - 19:23 | 3003517 Bansters-in-my-...
Bansters-in-my- feces's picture

Twinkie,Twinkie little star

 

Wonder where my Twinkies are.

Wed, 11/21/2012 - 19:24 | 3003518 northerngirl
northerngirl's picture

Welcome to the New America!  Forward...Yes we can.

Wed, 11/21/2012 - 20:08 | 3003595 rhinoblitzing
rhinoblitzing's picture

Anybody notice the resemblance of the the Twinkie Cowboy and... Pickens in the final scene of Dr Strangelove riding the H-Bomb???

Since I can't post images....

Paging...WB7... WB7... can we get a visual?

Wed, 11/21/2012 - 20:15 | 3003603 Papasmurf
Papasmurf's picture

Another successful looting.

Wed, 11/21/2012 - 20:42 | 3003649 Manic by Proxy
Manic by Proxy's picture

Was Hostess an evil corp.? Well, according the logic posted here, the answer apparently is "Does the Pope shit in the woods?" Was the Bakery Workers' Union evil? Stupid? Well, they are probably delighted to have that all-important time-off for the holidays. And likely permanent time-off following that. Better no job than lowered benefits and/or pay. The demise of unions is nigh. May they die when our craven politicians crawl under the grass. Crying for union workers? No need. Jobama will guarantee life unemployment benefits.

Thu, 11/22/2012 - 00:55 | 3003963 sethstorm
sethstorm's picture

Unions are quite full of unethical behavior, but I don't see anyone trying to bust staffing agencies, temporary help, or other unions organized by the employer.

The demise of unions is nigh. May they die when our craven politicians crawl under the grass.

Then let those that bust unions immediately follow suit to their own demise, lest they be given a second chance to harm the non-unionized. 

 

Wed, 11/21/2012 - 21:01 | 3003685 Yen Cross
Yen Cross's picture

 Wonder Bread makes good golf balls in a pinch... Just squeeze a slice into a nice orb and try it if you don't believe me. :-)

Wed, 11/21/2012 - 21:08 | 3003702 GrinandBearit
GrinandBearit's picture

100% true.  Don't forget to remove the crust first though.

Wed, 11/21/2012 - 21:05 | 3003693 MrTouchdown
MrTouchdown's picture

http://youtu.be/Db4Nds4BOVo

 

Good bye Hoooottthhhhtethhh

I'm flying over you!

Wed, 11/21/2012 - 23:48 | 3003904 Intoxicologist
Intoxicologist's picture

Whoa, Suzy Q, baby I love you....not.

Thu, 11/22/2012 - 00:50 | 3003960 sethstorm
sethstorm's picture

Sabotage at its worst and a reflection on destructive behavior from those who just want to see unions die - even if they end up with a Disunited States of America.  Going Galt harms this country more than it could ever help.

 

Perhaps it might be time for bankruptcy law to change so that this kind of thing can't happen again - as well as a stronger protection against employment discrimination for those identified with labor unions.

 

Thu, 11/22/2012 - 02:08 | 3004029 steveo77
steveo77's picture

Reduce diabetes!   less twinkies

 

Thu, 11/22/2012 - 03:12 | 3004062 lewy14
lewy14's picture

Wait... wait...

Immutable? Check.

Divisible? Check.

Aren't making any more of them? Check.

That's it. We need a Twinkie backed currency.

Plus, unlike gold, you can eat it.

Thu, 11/22/2012 - 04:16 | 3004078 Ginsengbull
Ginsengbull's picture

What's this crap?

You need to own a judge to go bankrupt nowadays?

I remember when all you had to do to go bankrupt was quit paying any bills.

Thu, 11/22/2012 - 08:51 | 3004228 FJ
FJ's picture

Reminds me of Zombieland...

Thu, 11/22/2012 - 12:41 | 3004664 sink critically
sink critically's picture

The House of Hostess was divided against itself with the usual result. There is one "works every time" cure for labor disputes, remove the need for collective bargaining. How could that happen? Simple, require management to "fill in" for any labor shortage. It's truly a perception problem, we are all the same class of human!

Thu, 11/22/2012 - 13:58 | 3004852 Roger Knights
Roger Knights's picture

“Every day our product is off the shelf, it’s diminishing in value. Our customers get used to selling goods without our brands, and the end-users learn to live without Twinkies and Wonder Bread.”

Now it's the hostess with the leastest.

Fri, 11/23/2012 - 03:39 | 3005828 PADRAEG
PADRAEG's picture

as Keynes put it, in the long term, we are all dead

 

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