William A. Jacobson
Legal Insurrection
11/19/2012
As noted the other day, Hostess is seeking lidquidation of its operations rather than trying to emerge out of bankruptcy as a going concern because it could not negotiate the union concessions it said it needed.
But there may be a White Knight on the Horizon, Sun Capital Partners:
Private equity firm Sun Capital Partners wants to buy bankrupt bakery Hostess Brands Inc., Fortune has learned.
The proposal would be to operate Hostess as a going concern, including reopening the shuttered factories and continuing union representation of Hostess workers.
Sun Capital privately expressed interest in acquiring Hostess earlier this year, but the bakery’s creditors chose for an alternate reorganization plan that ultimately failed. Following Friday’s liquidation, Sun reengaged by contacting Hostess advisor Perella Weinberg Partners. It also plans to contact the relevant labor unions.
Approximately 18,000 union jobs would be saved if Hostess remains a going concern.
Here’s the irony. The founder of Sun Capital Partners is the person who hosted the private fundraiser at which Mitt Romney made his infamous 47% statement…
The article continues at Legal Insurrection.
Update: Hostess Mediation Fails, Liquidation To Proceed; Furious Laid Off Workers Now Turn On Labor Union
…Sadly, the reality of learning just how bad the labor market truly is, all smoke and mirrors of a recovery aside, will now have to be experienced by not only Mr. Manksy but 18,499 of his fellow co-workers, who may have been duped into hoping by their union that by holding out a hardline stance, they would gain something.
They have now lost everything. And not too unexpectedly, the workers are now turning on the Union!…
