The bankruptcy judge hearing the case noted that neither party had gone through mediation and suggested they do that before any further action be taken
(Becket Adams) CNBC just a few moments ago tweeted the following:
BREAKING: Hostess and Bakers Union agree to mediation, preventing shut down.
If mediation leads to an agreement between the snack maker and the Bakers Union, it will mean that a) 18,000+ people just narrowly escaped joining the unemployment line and b) we ate all those Twinkies for nothing.
UPDATE: Lest there be some confusion, “mediation” doesn’t mean that a deal has been reached. It just means that both parties have agreed to sit down and hash out their problems.
“The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week,” the Associated Press reports.
The bankruptcy judge hearing the case noted that neither party had gone through the critical step of mediation and suggested they do that before any further action be taken.
“Moving to a liquidation is also a significant economic hit, and I think that many people, myself included, have serious questions as to the logic behind the decision to strike and a concern that it may be as a result of differences as far as information and goals,” U.S. Bankruptcy Judge Robert Drain said on Monday.
“I’m giving the union, as well as the debtors and their lenders, the last chance,” he added.
Both parties agreed.
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