Hostess Twinkies to live on?

Bankruptcy judge orders company, union to mediate

November 19, 2012

(AP Photo/Brennan Linsley)
Twinkies for sale at the Hostess Brands' bakery in Denver, Colo. on Nov. 16.

Hostess Twinkies aren't dead yet.

A bankruptcy judge has ordered the snack company and its second largest union into mediation, meaning the Irving, Texas-based company won't go out of business just yet. The news came Monday after Hostess moved to liquidate and sell off its assets in bankruptcy court citing a crippling strike last week.

The bankruptcy judge hearing the case says that the parties haven't gone through the critical step of mediation and asked the lawyer for the bakery's union to ask his client, who wasn't present, if he would agree to participate.

Hostess spokeswoman Anita-Marie Laurie said the company would follow the judge's request, saying it would be a "confidential" mediation with the baker's union.

She said the bankruptcy hearing had been adjourned until 11 p.m. EST on Wednesday.

The case is being heard by the U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y.

—The Associated Press contributed to this report.