Benefits January 11, 2012
Hostess Files Bankruptcy After Failing to Reach Pension Agreement
January 11, 2012 (PLANSPONSOR.com) – Hostess Brands Inc. filed bankruptcy protection after failing to reach an agreement on pension and health benefits.
Reported by Tara Cantore
According to news reports, in order to reorganize itself, the company will need to withdraw from multiemployer pension plans, address legacy health and welfare costs and secure new capital to modernize its production and distribution operations.
Hostess has approximately $860 million in debt. The company says it does not expect disruptions in the manufacturing and delivery of its products during the bankruptcy process.