Teamsters Cream Hostess Over Exec Pay Scam Allegations

Law360, New York (April 5, 2012, 2:12 PM EDT) -- Hostess Brands Inc.’s union workers are up in arms over reports that the company may have manipulated executives’ pay to give them bonuses prohibited by bankruptcy law, the Teamsters union said Wednesday, a day after Hostess sought more time to file a reorganization plan.

The Teamsters said the bankrupt company's unsecured creditors committee, which includes the union, is asking a New York bankruptcy court for a formal investigation into allegations that Hostess management violated the law by converting executives' performance-based bonuses to salary directly before filing...
To view the full article, register now.