Hostess Pension Diversion Could Spell Big Trouble

Law360, New York (December 10, 2012, 7:58 PM EST) -- Hostess Brands Inc. reportedly said over the weekend that it used employee wages earmarked for pension plans to fund its prebankruptcy operations, a revelation that could be a problem for the company and its former executives, depending on the magnitude and time frame of the diversions, experts said.

Hostess CEO Gregory Rayburn told The Wall Street Journal that wages employees had set aside for their pension plans had been used instead to help keep the company afloat before it filed for Chapter 11 protection in January....
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.