Bankrupt Hostess Brands and its biggest union are close to a last-ditch deal that would save the maker of Twinkies from liquidation, The Post has learned.
The company’s creditors, including Silver Point Capital, have made a new proposal that negotiators for the Teamsters union are willing to submit to members, sources said.
While the two sides are still ironing out the details, there are no major sticking points, according to sources.
The deal calls for concessions including a 5 percent wage cut in the first year for all Hostess workers, along with health-care benefit cuts and lower pension contributions, a source close to the talks said.
As part of the deal, Hostess would be able to sell smaller brands, such as Southeast favorite Merita Bread. Part of the sale proceeds would go to the company and part to pay back the creditors.
In exchange, the company would remain in almost all of the Teamsters’ multi-employer pension plans — a key demand of union officials.
The Teamsters are expected to reach a deal with creditors by week’s end, then spend the next few weeks preparing ballots to distribute to its roughly 8,500 Hostess worker members.
Even so, the deal will be a tough sell. Hostess workers already make significantly less than those at its closest rival, Mexico’s Grupo Bimbo.
“The workers have a right to choose whether to accept the deal,” the source said.
This is likely Hostess’ last hope. If the members reject the deal, talks will likely collapse, and the company could be forced to liquidate.
Besides the Teamsters, the Bakery Confectionery union’s Hostess workers would need to ratify the pact, under which the Teamsters and bakery union would get seats on the Hostess board.
A Hostess spokesperson declined comment.