Hostess Ch. 11 Plan Shuts Out Unsecured Creditors, Cuts Pay

Law360, New York (October 11, 2012, 4:02 PM EDT) -- Hostess Brands Inc. on Thursday filed a Chapter 11 bankruptcy plan in New York that targets a January exit from bankruptcy, would leave major equity holders and unsecured creditors with zero recovery, and would cut workers’ pay.

The Twinkie maker and its five subsidiaries submitted the “major milestone” joint plan of reorganization and accompanying disclosure statement to U.S. Bankruptcy Judge Robert D. Drain. The disclosure statement explains to creditors the plan's details regarding new labor agreements, the treatment of the various claims and interests, and the...
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