Hostess Brands filed a plan to emerge from bankruptcy which will involve cuts in employees' pay, health and pension plans.
But the future of the maker of Twinkies and Wonder Bread is still in doubt. The company said it could still go out of business if the Bakery Workers union carries out a threat to strike.
The iconic company's reorganization plan, filed Wednesday with the federal bankruptcy court in New York, calls for an 8% cut to employees' wages, a reduction in health benefits, and a freeze in pension plan payments for more than two years. Under the plan, the company will also not pay $2 billion it owes to many of its creditors, including vendors.
Read the full story on CNN Money - "Twinkies maker has plan to emerge from bankruptcy: wage cuts"