Hostess Unions Lose Fight To Prioritize Pensions

Law360, New York (September 30, 2013, 6:13 PM ET) -- A New York federal judge refused Monday to order the bankrupt company formerly known as Hostess Brands Inc. to prioritize its employee pension obligations above debts to other creditors, rejecting an appeal from Hostess' one-time union.

U.S. District Judge Edgardo Ramos said Hostess' pension fund contributions do not have to be treated as a so-called administrative expense in Hostess' bankruptcy.

Administrative expenses, a category that includes things like necessary wages, get first priority in a bankruptcy, as opposed to debts owed to other creditors.

Judge Ramos'...
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Case Information

Case Title

In Re: Hostess Brands, Inc.


Case Number

1:12-cv-05708

Court

New York Southern

Nature of Suit

Bankruptcy Appeal (801)

Judge

Edgardo Ramos

Date Filed

July 25, 2012

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