Say Goodbye to Twinkies and Wonderbread

[patteeu]

Originally Posted by BossChief

So, they are taking money that is owed to the workers and giving it to the executives before the ship sinks all the way to the bottom?

WOW. Straight up corporate theft right there.

They're paying people to do a job. They're going to stop paying people who aren't doing a job anymore.

[BigMeatballDave]

Originally Posted by patteeu

They're paying people to do a job. They're going to stop paying people who aren't doing a job anymore.

They are also not paying pensions that they owe.

[patteeu]

Originally Posted by Dave

They are also not paying pensions that they owe.

Yeah, that definitely sucks, but that happens in bankruptcy situations. If they don't keep people around to wind up the business, even fewer of the creditors will get paid because the liquidation will be less likely to get top dollar.

[Bowser]

Originally Posted by patteeu

Yeah, that definitely sucks, but that happens in bankruptcy situations. If they don't keep people around to wind up the business, even fewer of the creditors will get paid because the liquidation will be less likely to get top dollar.

Agreed.

That being said, do you agree that it is beyond ridiculous to keep a guy on to "wind up the business" at 125,000/month while 30+ year workers get ****ed out of their pensions?

[patteeu]

Originally Posted by Bowser

Agreed.

That being said, do you agree that it is beyond ridiculous to keep a guy on to "wind up the business" at 125,000/month while 30+ year workers get ****ed out of their pensions?

How easy is it to find a cheaper alternative and what were the terms of the guy's compensation before the decision to shut down and sell off?

[Mosbonian]

Originally Posted by patteeu

Yeah, that definitely sucks, but that happens in bankruptcy situations. If they don't keep people around to wind up the business, even fewer of the creditors will get paid because the liquidation will be less likely to get top dollar.

In bankruptcy the only people to truly get paid are:

Secured Creditors
Attorneys
CPA/Accountants hired for Forensic Account purposes
Employees who wind down the business
"Experts" in bankruptcy wind-down operations (Usually these are the experts who know how to maximize value of the bankruptcy estate)



Everyone else takes a haircut....some get a slight trim, others get it all taken off the top.

[BigRedChief]

Originally Posted by patteeu

They're paying people to do a job. They're going to stop paying people who aren't doing a job anymore.

They worked for 30 years to get that pension. Now what are they going to live on?.....unemployment and the taxpayer dime. While the executive gets a 300K raise and the junior executives get raises for the fantastic job they did running it into the ground.

You see nothing wrong with this picture?

[patteeu]

Originally Posted by BigRedChief

They worked for 30 years to get that pension. Now what are they going to live on?.....unemployment and the taxpayer dime. While the executive gets a 300K raise and the junior executives get raises for the fantastic job they did running it into the ground.

You see nothing wrong with this picture?

If the judge who has all the information approves it, why should I come to a different conclusion based on almost no information?

[DaFace]

Originally Posted by patteeu

If the judge who has all the information approves it, why should I come to a different conclusion based on almost no information?

Though it sounds awful and I don't blame the workers for being pissed, I agree with pat on this one. If you literally just fold up shop, there's even less money in the company to pay off debts and salvage whatever they can of those workers' pensions. It sounds like a lot of money to me for sure, but if they think they can save $200k per month by paying that guy $150k per month, they're making positive progress for everyone even if it doesn't seem that way.

[Jenson71]

Originally Posted by DaFace

Though it sounds awful and I don't blame the workers for being pissed, I agree with pat on this one. If you literally just fold up shop, there's even less money in the company to pay off debts and salvage whatever they can of those workers' pensions. It sounds like a lot of money to me for sure, but if they think they can save $200k per month by paying that guy $150k per month, they're making positive progress for everyone even if it doesn't seem that way.

Yeah, I guess there's not much more to do. I guess this is cheaper than paying a receivership to handle this (or maybe receiverships do not make those kinds of decisions).

Or, I will volunteer to do the job for 140K per month, and I will follow all the judge's decisions for who has priority of the remaining assets.

[BigRedChief]

Originally Posted by Literature

Yeah, I guess there's not much more to do. I guess this is cheaper than paying a receivership to handle this (or maybe receiverships do not make those kinds of decisions).

Or, I will volunteer to do the job for 140K per month, and I will follow all the judge's decisions for who has priority of the remaining assets.

Letting the executives that ran the company into the ground to profit while the working stiffs lose their pensions? In what world does that make sense?

[Jenson71]

Originally Posted by BigRedChief

Letting the executives that ran the company into the ground to profit while the working stiffs lose their pensions? In what world does that make sense?

As mentioned, in a world where we care about creditors and think the old executives are best able to handle the assets creditors are owed. Are the old executives taking advantage of the situation? Yeah, most likely. What is the cheaper alternative for wind-up management? Is it the receivership? I don't know.