Hostess union hires investment bank

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Associated Press

Posted on January 21, 2013 at 10:00 AM

Updated Monday, Jan 21 at 10:02 AM

NEW YORK (AP) — The pension fund for some of Hostess Brands' workers hired an investment bank to represent workers and pensioners as the Twinkie maker sells off its brands.

In a statement posted Sunday on its Web site, the bakers' union says Gordian Group LLC, a New York firm specializing in distressed cases, will represent the fund.

Gordian President Peter Kaufman says his company will try to ensure that potential buyers hire former Hostess workers and honor the company's pension obligations.

The Bakery and Confectionary Union and Industry International Pension Fund pays out $42 million in benefits per month to 52,000 pensioners, its website says.

Hostess in November filed bankruptcy and moved to liquidate after it failed to reach a contract agreement with the union, which represented about one-third of its 18,000 workers.

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