Hostess Brands Inc. filed a reorganization plan that includes wage cuts, reduction in health care and welfare benefits, and a freeze on pensions for at least two years, Reuters reported yesterday. Hostess is seeking to eliminate unsecured claims worth about $2.5 billion under the plan, and its equity owners may end up losing their investments, the company said in a court filing. Hostess filed for chapter 11 protection in January for the second time in less than three years as it struggled with crippling costs associated with its pension plans. Union and nonunion employees will take an 8 percent wage cut and will see only modest hikes in the coming years. The case is In re Hostess Brands Inc., Case No. 12-22052, U.S. Bankruptcy Court, Southern District of New York.
