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| Twinkies-maker Hostess Brands to hold last-ditch talks | Twinkies-maker Hostess Brands to hold last-ditch talks |
| (35 minutes later) | |
| Hostess Brands, which makes Twinkies in the US, has agreed to go to mediation with lenders and unions on Tuesday. | Hostess Brands, which makes Twinkies in the US, has agreed to go to mediation with lenders and unions on Tuesday. |
| The company was encouraged to hold more talks by a bankruptcy court, to which it had been expected to apply for permission to liquidate itself. | The company was encouraged to hold more talks by a bankruptcy court, to which it had been expected to apply for permission to liquidate itself. |
| Hostess Brands blamed the need to liquidate on a nationwide strike by the Bakery, Confectionery, Tobacco Workers and Grain Millers Union (BCTGM). | |
| It had sought bankruptcy protection from its creditors in January. | It had sought bankruptcy protection from its creditors in January. |
| Monday's hearing had been expected to be the first step towards selling its well-known brands such as Twinkies, Wonder Bread, Ding Dongs and Ho Hos. | Monday's hearing had been expected to be the first step towards selling its well-known brands such as Twinkies, Wonder Bread, Ding Dongs and Ho Hos. |
| But the hearing was quickly adjourned until Wednesday as the judge urged the parties to hold private talks to find a solution. | But the hearing was quickly adjourned until Wednesday as the judge urged the parties to hold private talks to find a solution. |
| In a short statement, the company said: "Hostess Brands Inc. announced today that it will follow a request from the US Bankruptcy Court for the Southern District of New York to enter a confidential mediation with BCTGM on Tuesday." | |
| "Today's hearing to consider Hostess Brands' motion to wind down the company and sell all of its assets has been adjourned until 1100EST [1600 GMT] on Wednesday." | |
| Members of the BCTGM union went on strike after workers were asked to accept pay cuts, diminished health benefits and a reduction in contributions to their pension fund from $100m (£63m) a year to $25m a year. | |
| It also emerged that some members of the management had received 80% pay rises at the same time. | |
| The company managed to reach an agreement with its biggest union, the International Brotherhood of Teamsters, but the bakers' union stayed out on strike. |