Insurers Can't Arbitrate Hostess' Collateral Request

Law360, New York (January 2, 2013, 7:36 PM EST) -- A New York bankruptcy judge denied a motion to compel arbitration of a dispute surrounding Hostess Brands Inc.’s bid to dip into cash collateral related to a workers' compensation and auto insurance program, according to an order filed Wednesday.

ACE American Insurance Co. and ESIS Inc. had asked the court to deny Hostess' 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 clause Hostess says can be...
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