Bankruptcy judges have a pretty wide swath of powers in the interests of the creditors and owners of a company.
The judge was able to impose the deal on the unions in the first place, which is why the Baker’s union went on strike. The Teamsters took the deal, the bakers balked.
What the judge cannot do is force the owners or investors to toss in more money than they already have (at least to my knowledge of BK law).
Here, the judge can try to mediate a deal under the notion that by so doing, there’s a chance at preserving investor capital and creditor principle.
Thanks Dave.
Haven’t seen any “Will Work for Twinkies” signs.....
Guess it would be too ambiguous, like “Will Work for Fairies”?
“What the judge cannot do is force the owners or investors to toss in more money than they already have (at least to my knowledge of BK law).”
The judge also can’t force their suppliers to sell them ingredients.