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Hostess CEO Gregory Rayburn will shut the company down if a vote by the Teamsters Union goes against it.
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Thanks very much -- felt -- the future for the -- company is nothing like.
These spongy sweet products the company says he'll be shut down.
If a vote by teamster employees starting today goes against that we are joined by -- CEO Greg Rayburn thanks for being with us.
Now the twinkie is kind of part of the company has been around for eighty years the Teamsters -- Vote comes in 3 -- 4 o'clock today as to whether they're willing to agree to a 190 million dollars a year in concessions.
Now you've told -- guys if you vote against that I'm shut down the company are you bluffing.
No no I've -- I don't bluff in general but but it's a serious it's a serious fact and it's -- hard truth behind we've been very consistent.
With our unions that there's not going to be a second vote.
There's not going to be.
You know a buyer and out in the wings that's -- swoop in and what the white Knight and save the company.
So if the Teamsters vote -- then we will we will shut down.
And you've done this before your work out artist having you helped -- -- try to resurrect the world commented after its scandal.
You shut down OTB that -- Parlors in New York.
When you told I'll do it unless we can't reach an agreement so maybe you're not -- here now the company lost 340 million dollars last year.
And -- tells a pension costs is a big part of burden for employees it never even worked.
For hope that we've we -- at a roughly a 103 million dollars a year in pension contributions.
Into multi employer funds and roughly 52 million of that and during the time of those contributions went to employees who never worked for hostess.
Because their companies went out then Teamsters contract requires the survivors to to pay for the old guys.
And now you're asking for a 109 million dollars in cuts and 8% pay cut.
And the pension contribution you get to escape -- 2016 and a false -- 125.
Million picked twenty January 2015 we will restart the pension contributions that 25 million so much less under five now why should the union vote in favor this tell us what they get what you've offered them.
Unlike the last bankruptcy because this is the second time through this process for hostess.
They're getting 25% equity ownership in the company.
That's -- -- their interest will be aligned with that the lenders who look at the other 75%.
What else exodus hundred million dollars of third lien debt which would put give them acclaim and an effect that's ahead of general and -- and -- head of equity.
They don't get crushed and -- -- that the fall back -- And -- board seats two board seats and 11 seat on the comp committee and they get to save 181000.
Jobs that this company.
-- things gonna turn out I've no idea you want to don't know exact quote I think there's a not recommended that before right they've simply put it up and said tell you guys decide.
Yeah they basically said.
You know this is we know this is difficult right and as I mentioned they went through bankruptcy before so this same employee group gave concessions probably not enough you know what if they had.
These concessions are deeper but they need to be for the company to be healthy and live for another seventy years so.
They said to them look this is a tough deal but you need to decide because it it's it's go -- -- go.
-- go or no deal at all and then leave entirely all right -- Rayburn CEO post -- thanks for being with us and good luck today -- that team.
