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Court Delays Hostess Bankruptcy Ruling Until Wednesday

A bankruptcy judge declined to act on the request from Hostess to sell its assets to give an opportunity for both sides to mediate.

Limited Edition Hostess Chocolate Creme Twinkies

Photo: theimpulsivebuy (Flickr)

Many courts are now requiring mediation.

The maker of Twinkies and Wonder Bread is not shutting down for now. At a hearing in White Plains, New York, U.S. Bankruptcy Judge Robert Drain questioned the “logic behind the decision to strike” but he also declined to act on the request from Hostess Brands to sell its assets.

Instead, he adjourned the case until Wednesday, giving the two sides a day to meet with a mediator. Some observers may have been surprised, but the President and Director of the Indiana Mediators Association, Kim Van Valer, says it is not an unusual move.

She says many courts are now requiring mediation, where a neutral professional assists the parties to reach an agreement. Van Valer says the legal profession is really trying to give credibility to the notion that the adversarial process is not always the best method of conflict resolution.

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  • mamasnothappy1

    If all it takes is a bankruptcy Judge and a few leeches to bleed a good company dry, we are all in danger. The only reason this company has done this is to break the union contracts and move it south where they believe that they can find cheap help and continue to reap unearned profit. At what point do we begin to investigate these kinds of illegal and immoral behaviors? I thought the bankruptcy judge was going to slap the management down to the ground and instead he has sided with them against the union. Negotiation means you offer equal for equal. Since the management has already looted the company, three times?, did the judge think that management would grow a soul?

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