Poor management, not union intransigence, killed Hostess


The firm emerged from bankruptcy with more debt than when it went in in with $575 million, out with $774 million, all secured by company assets. That's pretty much the opposite of what's supposed to happen in bankruptcy. By the end, there was barely a spare distributor cap in the motor pool that wasn't mortgaged to the private equity firms and hedge funds holding the notes (and also appointing management).

(link) [Los Angles Times]

14:35 /Politics | 0 comments | permanent link