Bimbo Balks At Hostess Bid To Avoid $2B Pension Payments

Law360, New York (February 10, 2012, 1:54 PM EST) -- Bimbo Bakeries USA objected Thursday to attempts by Hostess Brands Inc. to use its bankruptcy case to pull out of 24 multi-employer pension funds, saying Hostess' $2 billion pension obligations would be unfairly dumped onto Bimbo and other employers.

The Grupo Bimbo SAB subsidiary claims that if the other contributing employers are unable to withstand the financial impact of Hostess’ avoidance of its fiscal obligations to the funds, smaller competitors may become insolvent, and the funds themselves may suffer “catastrophic failure,” causing severe harm to employees...
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