Firm Advises on Hostess Bankruptcy

January 13, 2012

Business Reorganization and Restructuring Department represents Teamsters Union in Hostess Brands Inc. chapter 11 cases.

As reported widely in the press, including the January 12 Wall Street Journal, Willkie is advising the Teamsters Union in the Hostess Brands Inc. chapter 11 cases. The iconic baker of Twinkies and Wonder Bread filed for bankruptcy protection on January 11 in U.S. Bankruptcy Court in White Plains, New York. Hostess, a privately held Texas-based company, said in its filing that its biggest unsecured creditor is the Bakery & Confectionary Union & Industry International Pension Fund, which it owes about $944 million. The company is looking for concessions from the 12 unions that comprise 83% of its approximately 19,000-employee workforce. Noting Willkie’s involvement in the case, the WSJ wrote, "Hostess’s workers have their own top-shelf restructuring advisers negotiating on their behalf." Hostess will continue to operate while restructuring. The matter is being handled by partner Matthew Feldman.