Insurers Seek Arbitration For Hostess' Collateral Request

Law360, New York (December 7, 2012, 10:32 PM EST) -- ACE American Insurance Co. and ESIS Inc. on Friday urged the New York bankruptcy court overseeing Hostess Brands Inc.’s Chapter 11 proceedings to compel arbitration for Hostess’ bid to dip into cash collateral related to a workers' compensation and auto insurance program.

The insurance companies asked the court to deny Hostess' Nov. 5 motion to use some of the cash collateral held by the insurers in order to satisfy obligations to the insurers, calling it an attempt to circumvent an arbitration they say can be triggered...
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