Hostess Brands Inc., the maker of Twinkies and Wonder Bread, has been given approval by a bankruptcy judge to reject certain union contracts and modify some retiree benefits, Reuters reported yesterday. Hostess can now reject some agreements with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, as the company tries to cut crippling legacy costs associated with its pension plans and massive debt levels. However, contracts that had expired before the start of the hearing, under which the union is still operating, cannot be modified or rejected by the company, Judge Robert Drain said in court documents published on Friday.
Mark your calendars for May 23 from 2-3:30 p.m. ET for the ABI Labor and Employment Committee's "Evolving Labor Issues in Chapter 11" Webinar. A panel of experts will be discussing recent developments in several large complex bankruptcy cases, including Hostess, Kodak, Nortel and American Airlines. For more information and to register, please click here: http://www.abiworld.org/laborweb/index.htm.