Financially troubled U.S. solar-panel maker Energy Conversion Devices Inc. said yesterday that it has canceled a bankruptcy auction of its manufacturing operations and will lay off about 300 employees, Dow Jones DBR Small Cap reported today. Energy Conversion Devices, of Auburn Hills, Mich., had planned to hold an auction for its United Solar Ovonic LLC manufacturing unit May 8.
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.
Mounting turmoil at New York law firm Dewey & LeBoeuf LLP threatens to send hundreds of lawyers and other staffers into one of the worst legal-job markets in decades, the Wall Street Journal reported today. The law firm, which employs more than 1,000 lawyers, is struggling to cope with heavy debts and the loss of dozens of partners. It is considering a number of options for preserving jobs, such as transferring practice groups to other firms, even as a bankruptcy filing looms as a possible last resort.