US Trustee Wants to Manage Hostess Liquidation
The U.S. trustee in the bankruptcy of Hostess Brands Inc. asked a judge to take control of the company’s liquidation away from the baker of Twinkies and Wonder bread.
U.S. Trustee Tracy Hope Davis today urged U.S. Bankruptcy Judge Robert D. Drain in White Plains, New York, to convert the case to a Chapter 7 from Chapter 11, based partly on the company’s intent to pay executive bonuses.
Hostess officials “have not demonstrated that the insider bonuses are permissible,” Davis wrote in a court filing.
Source: Bloomberg. Read full article. (link)
Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time.
-
We need to save this money for more bonehead ideas like Solyndra.
-
Hostess liquidation...Yummm...