IRVING, TX -- Hostess Brands Inc. has retained Gregory F. Rayburn of Kobi Partners LLC as its chief restructuring officer. The maker of Ding Dongs, Ho Hos and Twinkies filed for reorganization under Chapter 11 bankruptcy product in January.
Rayburn will report to Hostess president and chief executive Brian Driscoll. He has three decades of experience working with troubled businesses to create and maximize value for all stakeholders. Kobi Partners is a restructuring advisory services firm based in Winston-Salem, NC.
Rayburn has held executive posts at several high-profile companies, including Indianapolis Downs LLC, New York City Off Track Betting Association, Magna Entertainment Corp., AAIPharma Services and Sunterra Corp. He served as chief restructuring officer for WorldCom during what was then the largest U.S. bankruptcy filing in history.
He is a director of The Great Atlantic & Pacific Tea Co. and serves as an expert witness in federal and state courts on issues including business viability, valuation, strategic plan assessment, fraud, damages and bankruptcy reorganizations.
Meanwhile, the Teamsters Union has threatened to strike if the judge in Hostess's Chapter 11 case allows the company to cut wages and benefits for employees.
The company asked the judge to reduce its commitments to workers who are members of the Teamsters and a bakers union. The Irving, TX, baked goods giant said that the cuts would be the only way it can reorganize itself into a viable company.
In all, union members represent more than three-quarters of Hostess's 19,000 employees, the company said. A hearing on the company's motion is scheduled for March 5.