Teamsters Remain Committed to Finding Mutual Solution For Bankrupt Hostess Brands Inc.

News provided by

International Brotherhood of Teamsters

Jan 11, 2012, 10:52 ET

Union Represents More than 7,500 Delivery Drivers, Merchandisers

WASHINGTON, Jan. 11, 2012 /PRNewswire-USNewswire/ -- Today's bankruptcy filing by Hostess Brands Inc. marks another sad development in the company's difficult history since its initial bankruptcy filing in late 2004, the Teamsters Union said.

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The company emerged from that bankruptcy in 2009, largely due to the sacrifices made by Teamster members and other unionized employees, including members of the Bakery, Confectionery and Tobacco Workers Union. More than 7,500 of the company's nationwide fleet of delivery drivers and merchandisers are Teamsters.

The Teamsters National Bargaining Committee has been working with Hostess management for months to identify a consensual resolution that would address the company's many problems.

"While no agreement has been reached to date, the Teamsters Union remains committed to working with all stakeholders during the bankruptcy to find a mutually agreeable solution, if possible," said Dennis Raymond, Director of the Teamsters Bakery and Laundry Conference.

"Our members have already given at the well, and this time it will take sacrifices among all parties – management, lenders, equity holders and employees – to restructure Hostess into a viable enterprise that is well-positioned for future growth," Raymond said. "We were hoping that could have been done prior to a bankruptcy filing, but unfortunately that did not occur. We remain committed to finding a solution, if possible, over the next few months during the bankruptcy process."

The company filed for Chapter 11 bankruptcy protection in the Southern District of New York. In a Chapter 11 filing, the debtor seeks to restructure so it can eventually exit bankruptcy with an approved plan of reorganization. The time that a company has to develop its plan of reorganization varies and is dependent on financing the company arranges to fund its stay in bankruptcy.

Founded in 1903, the Teamsters Union represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @TeamsterPower.

SOURCE International Brotherhood of Teamsters