Mesa Bankruptcy Attorney On Hostess Bankruptcy
Well I haven’t talked about the hostess bankruptcy very much yet. there are still lots of things happening in that case and there is lots of rancor about are we able going to eat the hostess “twinkie” again? And that kind of thing? Of course we are because someone will buy those assets, if the company isn’t successful in organizing. The company has taken a pretty dramatic business decision here to file a bankruptcy case where you know there are lots of factors at play of course the economy has turned down, people presumably are more health conscious; maybe they are not buying as many cupcakes and Twinkies and such, as they used to, who knows all the factors are; but they also have unions to deal with, and the union people are very concerned about their wages being cut and their pensions being reduced or eliminated. All kinds of things that have happened to those people that are concerned about what’s going happen in the future. We all understand that many of us are experiencing very similar stress. The bottom line in the hostess bankruptcy, like any other bankruptcy is that it is largely a business decision. Do they want to just close the doors and sell off the assets and move on? Probably not. The stockholders aren’t going to be very happy with that, the executives who work there, and are making these decisions are likely not to want to do that; but they are in a pinch where they have creditors pushing them and they do not have anywhere else to turn. Lots of other companies have made similar decisions as a business decision, where they really would not have liked to do that, if they didn’t have to. It gives them a bankruptcy judge who can make decision in a whole lot of areas that impact all aspects of the company, and so it’s a pretty effective place to go in and do some restructuring of your business. So that’s what the hostess bankruptcy is all about we’ll keep an eye on it and see if there’s any major developments as we go along.