Hostess and Unions Attempt to Prevent Liquidation

At the request of a U.S. federal court judge, Hostess Brands and its major
major unions have agreed to a mediation session.

Judge Robert D. Drain is overseeing the bankruptcy case on behalf of the
Federal Bankruptcy Court for the Southern District of New York.

This agreement to mediation comes just days after the company announced that it would
be going closing, laying off 18,500 people.

Judge Drain is urging Hostess and the unions involved to try their best in avoiding
the bankruptcy if possible.

Should Hostess and the unions be unable to reach a deal, it is likely that
the larger brand names would survive the liquidation.

The mediation process is expected to begin on Tuesday.


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