Texas-based Hostess Brands Inc. asked a judge on Wednesday to approve an additional $1.9 million in executive bonuses, according to The Associated Press, saying the money is needed to keep top managers on as the company sells off all its assets.
The company’s most recent court filing asks New York-based bankruptcy Judge Robert Drain to give final approval of managements plans to liquidate its assets.
If approved, the move would be the final defeat for the company’s union, which saw Judge Drain order significant concessions from the workers earlier this month.
In addition to laying off more than 18,000 workers, the company stopped contributing to its union pension plans some time ago and now owes workers more than $111 million.
Gregory Rayburn, the company’s interim CEO, told The Dallas Morning News on Wednesday that more than 80 firms have lined up to buy out the company’s assets, in a series of sales that could pull in more than $1 billion. It is possible that the unionized workers could be hired on by one of those other companies.
Photo: Christian Cable via Flickr Commons
Stephen C. Webster
Stephen C. Webster is the senior editor of Raw Story, and is based out of Austin, Texas. He previously worked as the associate editor of The Lone Star Iconoclast in Crawford, Texas, where he covered state politics and the peace movement’s resurgence at the start of the Iraq war. Webster has also contributed to publications such as True/Slant, Austin Monthly, The Dallas Business Journal, The Dallas Morning News, Fort Worth Weekly, The News Connection and others. Follow him on Twitter at @StephenCWebster.
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