Hostess request to reject Teamsters labor contracts denied by judge

By Caroline Salls

Pittsburgh, May 15 - Hostess Brands Inc.'s motion to reject all Teamster labor contracts was denied in an oral decision issued Monday by judge Robert Drain, according to an International Brotherhood of Teamsters news release.

The union said the ruling means that all Hostess contracts with Teamsters locals remain in effect.

"It's a rare day when a bankruptcy judge denies a company's request to reject its union contracts," Teamsters general secretary-treasurer Ken Hall said in the release.

"The judge specifically noted that the union and its advisers had accurately identified the company's operational and business issues and were highly knowledgeable about the company.

"While we agree with most of judge Drain's ruling, we recognize that it doesn't solve Hostess' problems.

"We remain committed to finding a solution and urge the company and its lenders to do the same."

Hostess Brands, an Irving, Texas-based operator of regional bakeries, filed for bankruptcy on Jan. 11 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 12-22052.

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