Documents Show F.D.A.’s Failures in Meningitis Outbreak





Newly released documents add vivid detail to the emerging portrait of the Food and Drug Administration’s ineffective and halting efforts to regulate a Massachusetts company implicated in a national meningitis outbreak that has sickened nearly 500 people and killed 34.




In the documents, released on Tuesday in response to a Freedom of Information Act request, the agency would threaten to bring the full force of its authority down on the company, only to back away, citing lack of jurisdiction.


The company, the New England Compounding Center, at times cooperated with F.D.A. inspectors and promised to improve its procedures, and at other times challenged the agency’s legal authority to regulate it, refused to provide records and continued to ship a drug in defiance of the agency’s concerns.


Some of the documents were summarized last week by Congressional committees that held hearings on the meningitis outbreak. Republicans and Democrats criticized the F.D.A. for failing to act on information about unsafe practices at the company as far back as March 2002.


By law, compounding pharmacies are regulated primarily by the states, but the pharmacies have grown over the years into major suppliers of some of the country’s biggest hospitals. The F.D.A. is asking Congress for stronger, clearer authority to police them, but Republicans have said the agency already has enough power.


Records show that the agency was sometimes slow in pursuing its own inspection findings. In one case involving the labeling and marketing of drugs, the agency issued a warning letter to New England Compounding 684 days after an inspection, a delay that the company’s chief pharmacist complained was so long that some of the letter’s assertions no longer applied to its operations.


The agency said in a statement Wednesday that it “was not the timeline we strive for,” but that much of the delay was because of “our limited, unclear and contested authority in this area.” Because of litigation, it said, there was “significant internal discussion about how to regulate compounders.”


The agency first inspected the company in April 2002 after reports that two patients had become dizzy and short of breath after being injected with a steroid made by the company.


 On the first day of the inspection, Barry Cadden, the chief pharmacist, was cooperative, but the next day, the agency inspectors wrote, Mr. Cadden “had a complete change in attitude & basically would not provide any additional information either by responding to questions or providing records,” adding that he challenged their legal authority to be at his pharmacy at all.


The F.D.A. was back at New England Compounding in October 2002 because of possible contamination of another of its products, methylprednisolone acetate, the same drug involved in the current meningitis outbreak.


 While the F.D.A. had the right to seize an adulterated steroid, officials at the time said that action alone would not resolve the company’s poor compounding practices. In a meeting with Massachusetts regulators, F.D.A. officials left authority in the hands of the state, which “would be in a better position to gain compliance or take regulatory action,” according to a memo by an F.D.A. official summarizing the meeting.


 David Elder, compliance branch director for the F.D.A.’s New England District, warned at the meeting that there was the “potential for serious public health consequences if N.E.C.C.’s compounding practices, in particular those relating to sterile products, are not improved.”


 The company fought back hard, repeatedly questioning the F.D.A.’s jurisdiction. In a September 2004 inspection over concerns that the company was dispensing trypan blue, a dye used for some eye surgeries that had not been approved by the F.D.A., Mr. Cadden told the agency inspector that he had none in stock.


But in the clean room, the inspector noticed a drawer labeled “Trypan Blue,” which contained 189 vials of the medicine.


A few days later, Mr. Cadden was defiant. He told the agency that he was continuing to dispense trypan blue and that there was nothing in the law saying a compounder could not dispense unapproved products.


 The conversation turned testy. “Don’t answer any more questions!” Mr. Cadden told another pharmacy executive, according to the F.D.A.’s report.


Mr. Cadden rejected many of the assertions in the warning letter that finally came in December 2006. The next correspondence from the agency did not come until almost two years later, in October 2008, saying that the agency still had “serious concerns” about the company’s practices, and that failing to correct them could result in seizure of products and an injunction against the company and its principals.


It is not known whether any corrective actions were taken. The agency did not conduct another inspection until the recent meningitis outbreak.


Denise Grady contributed reporting.



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Judge to let Hostess liquidation proceed









Hostess Brands Inc. on Wednesday won permission from a U.S. bankruptcy judge to begin shutting down, and expressed optimism it will find new homes for many of its iconic brands, which include Twinkies, Drake's cakes and Wonder Bread.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York authorized management, led by restructuring specialist Gregory Rayburn, to immediately begin efforts to wind down the 82-year-old company, a process expected to take one year.






"It appears clear to me that the debtors have taken the right course in seeking to implement the wind-down plan as promptly as possible," Drain said near the end of a four-hour hearing.

The judge authorized Hostess to begin the liquidation process one day after his last-ditch mediation effort between the Irving, Texas-based company and its striking bakers' union broke down.

Roughly 15,000 workers were expected to lose their jobs immediately, and most of the remaining 3,200 would be let go within four months.

"This is a tragedy, and we're well aware of it," Heather Lennox, a lawyer for Hostess, told the judge. "We are trying to be as sensitive as we can possibly be under the circumstances to the human cost of this."

Lennox said Hostess has received a "flood of inquiries" from potential buyers for several brands that could be sold at auction, and expects initial bidders within a few weeks.

Joshua Scherer, a partner at Perella Weinberg Partners, which is advising Hostess, said the company was in "active dialogue" over its Drake's brand with one "very interested" party that had toured a New Jersey plant on Tuesday.

He said that regional bakeries, national rivals, private equity firms and others have also expressed interest in various brands and that more than 50 nondisclosure agreements have been signed.

"These are iconic brands that people love," Scherer said.

While prospective buyers were not identified at the hearing, bankers have said rivals including Flowers Foods Inc. and Mexico's Grupo Bimbo SAB de CV were likely to be interested in some of the brands.

Representatives of neither company responded on Wednesday to requests for comment.

Scherer said Hostess could be worth $2.3 billion to $2.4 billion in a normal bankruptcy, an amount equal to its annual revenue. It also has about $900 million of secured debt and faces up to about $150 million of administrative claims.

Scherer expects a discount in this case because plants have already been closed and Hostess' value could fall further if the liquidation were dragged out.

"I've had buyers tell me, 'Josh, the longer it takes, the less value I'm going to be able to pay you,' " he said.

Hostess decided to liquidate on Nov. 16, saying it was losing about $1 million per day after the Bakery, Confectionery, Tobacco and Grain Millers Union, representing close to one-third of its workers, went on strike a week earlier.

The bakers union walked out after Drain authorized Hostess to impose pay and benefit cuts, which the International Brotherhood of Teamsters, Hostess' largest union, had accepted.

Hostess has about 33 plants, plus three it decided to close after the strike began, as well as 565 distribution centers and 570 bakery outlet stores.

Many of the 3,200 workers expected to stay on will help shut these properties and prepare them for sale. Hostess expects to need only about 200 employees by late March.

Rayburn, a former chief restructuring officer for the bankrupt phone company WorldCom Inc., said that letting 15,000 workers go now helps preserve their ability to obtain unemployment benefits.

"I need to maximize the value of the estate, but I need to do the best I can for my employees," he said.

Hostess filed for Chapter 11 protection on Jan. 11, its second bankruptcy filing in less than three years.

The case is In re: Hostess Brands Inc. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-22052.

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Bartender wounded in hotel stabbing: 'It was bone-chilling'









Bradford Burner didn't stop to think when he heard a blood-curdling scream and saw a man race through the Westin Hotel and into the streets of the Magnificent Mile still crowded from the Festival of Lights. He gave chase.


"The way the person screamed, 'Stop that person!' — it was bone-chilling," said Burner, 35, who was bartending Saturday night at the Westin's Grill on the Alley restaurant. "I just reacted."


Speaking out Tuesday for the first time, Burner said the man displayed a knife as he closed in on him near some shops at the Hancock building.





"Someone yelled something. The gentleman turned around (and) saw me coming toward him," Burner told Chicago Tribune columnist John Kass on WLS-AM 890. "The next thing I know, he was lunging at me with a sharp object."


Burner was cut on the left side of his chest and fell to the sidewalk.


"I was like, 'What the hell just happened?'" Burner told the Tribune after his radio interview.


Police and prosecutors said Jimmy Harris had tried to rob an Oak Brook doctor, Mir Jafar Shah, in the restaurant bathroom and stabbed and struck him during a scuffle before fleeing. Harris, 56, a parolee with 60 arrests who had just been freed from prison eight days earlier, is being held without bond on charges of attempted murder, aggravated battery and unlawful restraint.


In the radio interview, Burner said that after he had been cut on the chest, the assailant ran across the street before slowing down, trying to blend in among the families strolling along North Michigan Avenue.


"I looked right over at him. He paused for two seconds and looked directly back at me, and then he proceeded down the steps," Burner said. "His demeanor was that of a person trying to get away ... sacrifice everything to get away from the situation."


Burner recalled that parents and their small children stared down at him as he lay bleeding. He decided not to wait for an ambulance and hailed a cab. He hopped in and asked the driver, "What was the fastest he could get me to Northwestern (Memorial) Hospital?"


"The taxi driver was freaked out," Burner said. "He was like, 'Are you crazy?' I said, I'm really serious about this,'" said Burner, showing the cabbie his bloodied shirt and vest.


Burner said he tipped the driver — how much, he can't remember — before going inside to be stitched up for the deep wound.


Burner bristled at being called a hero.


"My heart goes out to (Shah) and their whole family that they had to go through this tragedy," Burner said. "I was just trying to stop an individual that was doing something wrong."


Tribune reporter Jason Meisner contributed.


wlee@tribune.com


Twitter: @MidnoirCowboy





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One Direction’s 2nd CD hits No. 1, sells 540,000
















NEW YORK (AP) — One Direction‘s “Take Me Home” is the taking the boys to the top of the charts — and to new heights.


The group’s sophomore album has sold 540,000 in its first week, according to Nielsen SoundScan. It’s the year’s third-highest debut behind Taylor Swift‘s “Red,” which sold 1.2 million units its first week earlier this month, and Mumford & Sons’ “Babel,” which sold more than 600,000 albums in September in its debut week.













“We just want to say a massive thanks to all the fans who have supported us,” band member Harry Styles, 18, said in an interview Tuesday from London. “We can send tweets and thank them, but 140 characters is never going be enough to say how much it means.”


The album also debuted at No. 1 in the United Kingdom this week and is No. 1 in more than 30 countries, Columbia Records said Wednesday. The fivesome’s debut, “Up All Night,” came in at No. 2 in the United Kingdom last year; it was just released in March in America, where it hit No. 1 and has achieved platinum status.


“We were a little bit nervous about how people were going to take it,” 19-year-old Niall Horan said of the new album during tour rehearsals. “Everyone gets that second album syndrome.”


They say though they’re excited, they won’t be celebrating too much: “We’re finishing rehearsing soon and we’re going home to bed.”


One Direction, who placed third on the U.K. version of “The X Factor” in 2010, is signed to Simon Cowell’s Syco label imprint. In just a year, the band has become worldwide sensations, thanks to its feverish fans. They released a book and have a 3D movie planned. They also made the cut for Barbara Walters’ most fascinating people of 2012 list, which includes New Jersey Gov. Chris Christie and U.S. gold medalist Gabby Douglas.


One Direction says those experiences have helped the group mature.


“We’ve been working hard. We’re starting to grow up,” Horan said. “We’re still young, but we’ve passed the initial teenage years. …We’ve grown up quite quick in the job we have to do and we became a lot more independent.”


The group — which includes Zayn Malik, Liam Payne and Louis Tomlinson — will launch a worldwide tour in February. They hope to work with Katy Perry and are still trying to adjust to the celebrity and fame that has taken over their lives.


“I can see how it gets to people. I guess it’s quite easy to get wrapped up in it all,” Styles said. “We do the same things every other lad our age does. We go out, we have fun, we meet girls and stuff like that. Sometimes it gets written about, which, yeah, we think about it and it’s absolutely crazy. It’s still a bit weird thinking that that’s the way it is.”


___


Online:


http://www.onedirectionmusic.com/us/home/


___


Follow Music Mesfin on Twitter at http://twitter.com/MusicMesfin


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Recipes for Health: Pear Cranberry Galette — Recipes for Health


Andrew Scrivani for The New York Times







I used Bartlett pears for this juicy galette, but pretty much any variety will work, as long as they’re not overly ripe.




1 dessert galette pastry (1/2 recipe)


2/3 cup dried cranberries


2 pounds pears, ripe but not too soft, peeled, cored and sliced (about 8 to 12 wedges per pear, depending on the size; if the pears are very large, cut the slices into 2 pieces at the middle)


1 tablespoon fresh lemon juice


2 tablespoons mild honey, like clover


1/2 teaspoon cinnamon


1 teaspoon vanilla


1/4 cup (25 grams) almond powder


1 egg beaten with 1 teaspoon milk, for egg wash


1 tablespoon raw brown sugar


1. Remove the pastry from the freezer and place it on a baking sheet lined with parchment. Leave to thaw while you prepare the fruit, but don’t keep it out of the freezer for too long. It’s easiest to handle if it’s cold and will thaw quickly. You just want it soft enough so that you can manipulate it.


2. Soak the cranberries for 5 minutes in hot water. Drain and dry on paper towels. Toss the sliced pears with the lemon juice in a large bowl, then add the dried cranberries, honey, cinnamon and vanilla and gently toss together.


3. Sprinkle the almond powder over the pastry, leaving a 2- to 3-inch border all around. Place the fruit on top. Fold the edges of the dough in over the fruit, pleating the edges as you work your way around the fruit to form a free-form tart that is roughly 9 inches in diameter. Place in the freezer on the baking sheet for 45 minutes to an hour. This helps the galette maintain its shape.


4. Meanwhile, preheat the oven to 350 degrees. Remove the galette from the freezer. Brush the exposed edge of the pastry with the egg wash. Sprinkle the sugar over the fruit and the crust. Place in the oven and bake 50 to 60 minutes, until the fruit is bubbly and the juice is running out and caramelizing on the parchment. Remove from the oven and allow to cool for at least 15 minutes. Serve hot, warm or at room temperature.


Yield: 1 9-inch galette, serving 8


Advance preparation: You can assemble this through Step 3 and freeze it for up to a month. Once it is frozen, double-wrap it in plastic. You can also freeze the galette after baking. Thaw and warm in a 350-degree oven for 10 to 15 minutes to recrisp the crust.


Nutritional information per serving: 246 calories; 6 grams fat; 2 grams saturated fat; 1 gram polyunsaturated fat; 2 grams monounsaturated fat; 43 milligrams cholesterol; 46 grams carbohydrates; 5 grams dietary fiber; 90 milligrams sodium; 5 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Hostess, union fail to reach deal









Hostess Brands Inc, the bankrupt maker of Twinkies and Wonder Bread, said on Tuesday that it failed to reach a deal in mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union.

The company, which operates three facilities in Illinois, including in Schiller Park and Hodgkins, said it will have no further comment until a hearing scheduled for Wednesday before the U.S. Bankruptcy Court for the Southern District of New York.

A representative of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) did not immediately respond for comment.

The ailing company, which also makes Wonder Bread and Drake's cakes, went to bankruptcy court on Monday to seek permission to liquidate its business, claiming that its operations were crippled by the bakers' strike and that winding down was the best way to preserve its dwindling cash.

But Bankruptcy Judge Robert Drain of the Southern District of New York urged the sides into a private mediation, prompted by a desire to protect the more than 18,000 jobs at stake.

The 82-year-old Hostess runs 33 bakeries, 553 distribution centers, about 5,500 delivery routes and 527 bakery outlet stores throughout the United States. Bakery operations ceased last week, though product deliveries to stores continued in order to sell already-made products.

The company has blamed union wages and pension costs for contributing to its unprofitably. Hostess Chief Executive Gregory Rayburn has also said the company's labor contracts have deterred would-be bidders for the company and its assets.

Aside from its unionized workforce, analysts, bankers and restructuring experts have said that a fleet of inefficient and out-of-date factories has also eaten up costs. They have said the brand names were likely to be more valuable once they were separated from the factories and sold to non-union competitors.



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Bears, Campbell pounded in 32-7 loss to 49ers

Postgame analysis of the Chicago Bears' 32-7 loss to the San Francisco 49ers with Chicago Tribune columnists Steve Rosenbloom and Fred Mitchell and sports editor Mike Kellams. (Posted on Nov. 19)









SAN FRANCISCO — It's too bad Colin Kaepernick wasn't available when Phil Emery set out to find a backup quarterback.

The first-year general manager had to strike quickly to find an experienced No. 2. The Bears invested big money in Jason Campbell, signing him to a one-year, $3.5 million deal at the outset of free agent.






Campbell making the 71st start of his career Monday night at Candlestick Park was nowhere near as good as Kaepernick making his first start. The 2011 second-round pick from Nevada led a destruction of the Bears defense as the 49ers won a 32-7 rout.

The Bears managed just 143 yards offense, their worst output since the 2010 game at the Giants when Jay Cutler was sacked nine times in the first half and concussed. Linebacker Aldon Smith of the 49ers had 51/2 sacks, a record versus the Bears.

"Tonight was probably the worst nightmare," Campbell said. "Our goals and everything are still set ahead of us, but we've got to start improving and improving quickly. The games don't get any easier."

The Bears must wonder if Cutler will be able to return from his latest concussion in time for Sunday's game against the Vikings at Soldier Field and coach Lovie Smith was optimistic afterward. Smith will have to contemplate what happened to his defense, which got mauled by the 49ers. The absence of Cutler had nothing to do with the Bears surrendering a 96-yard touchdown drive in just four minutes as San Francisco (7-2-1) jetted to a 20-0 lead.

All signs pointed to Alex Smith starting for the 49ers after he suffered a concussion a week ago, but news broke Monday morning that he had not passed his neurological exam. So Kaepernick was thrust into a starting role after Smith got much of the work in practice last week. Known for his running ability, Kaepernick carved up the secondary from the start to catch the Bears — in particular safeties Major Wright and Chris Conte — off guard.

Kaepernick completed 16 of 23 passes for 243 yards and touchdown passes to Vernon Davis and Michael Crabtree. He may have created a quarterback controversy in the Bay Area, where Alex Smith always has seemed to be on shaky ground. Coach Jim Harbaugh did little to quiet a brewing controversy afterward, saying, "We'll see. Usually tend to go with the guy who's got the hot hand."

Having lost two straight, the Bears (7-3) are in a tie with the Packers (7-3) atop the NFC North, but Green Bay won the Week 2 meeting. It sets up to be an interesting finish with the Vikings (6-4) only a game back. The Bears host the Packers on Dec. 16 in a game that could decide the division.

But the Bears cannot be thinking about the postseason after being worked over. The offense ended a drought of 111 minutes, 37 seconds without a touchdown when Campbell connected with Brandon Marshall for a 13-yard touchdown late in the third quarter. Lovie Smith's formula for takeaways was not successful as the Bears came up empty for the first time this season.

"It was embarrassing," center Roberto Garza said. "We're a much better team than that. This is not the type of team we are. We have to find out what is going on."

The run defense was vulnerable again as Frank Gore carried 17 times for 78 yards and backup Kendall Hunter gained 27 yards and scored on a 14-yard carry. This on the heels of consecutive 100-yard games by the Texans' Arian Foster and Titans' Chris Johnson with Vikings star Adrian Peterson set to face the Bears for the first time this season Sunday.

"You've got to admit they gave it to us," defensive end Corey Wootton said. "We got our butts kicked."

Meanwhile, the Bears failed in effort to get their ground game going. Matt Forte gained 63 yards on 21 carries and Michael Bush was ineffective. Campbell was under siege even before the score got out of hand. He completed 14 of 22 passes for 107 yards and was intercepted twice. He was sacked six times as outside linebacker Aldon Smith dominated tackles J'Marcus Webb and Gabe Carimi. The 49ers did a nice job covering Brandon Marshall as he was limited to two receptions for 21 yards.

If the previous two games have proved anything, it's that the first half of the schedule was packed with cupcakes. Emery has been out on the road scouting in advance of a big predraft meeting next month. He probably didn't need to see this wreck to know offensive linemen, plural, must be a priority even over a backup quarterback.

bmbiggs@tribune.com

Twitter @BradBiggs



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Jackie Chan: upcoming film will be last big action movie
















BEIJING (Reuters) – Kung Fu superstar Jackie Chan said that while the upcoming film “Chinese Zodiac 2012″ will be his last major action movie, citing his increasing age, he will still be packing punches in the world of philanthropy.


Chan wrote, directed and produced his latest film, set to premiere in cinemas in China next month. He also plays the lead role and said that he regarded it the “best film for myself” in the last ten years.













“I’m the director, I’m the writer, I’m the producer, I’m the action director, almost everything,” the 58-year-old Hong Kong actor told Reuters while in Beijing to film a documentary.


“This really, really is my baby. You know, I’ve been writing the script for seven years,” and the film took a year and half to make, he added.


In the film, Chan is a treasure hunter seeking to repatriate sculpture heads of the 12 animals of the Chinese zodiac, which were taken from Beijing‘s Summer Palace by French and British forces during the Opium Wars.


He said it was an important movie for him because it will be his last major action feature, although he insisted it is not the end of his action career.


“I’m not young any more, honestly,” he said, noting that with special effects technology and doubles a lot can be done without physical risk.


“Why (do) I have to use my own life to still do these kind of things?” he said. “I will still do as much as I can. But I just don’t want to risk my life to sit in a wheelchair, that’s all.”


Chan was recently awarded the Social Philanthropist of the Year award by Harpers Bazaar magazine. He said he wanted to increase time devoted to charitable work and hoped China’s leagues of newly wealthy will follow his example – which he underlined by auctioning a Bentley 666 for around 6 million yuan ($ 961,837).


China now has more billionaires than any other Asian country, but very few philanthropic organizations, and giving to charity remains a relatively new phenomenon in the world’s most populous country.


Chan said while Chinese philanthropists have made some encouraging strides, much more still needs to be done – a task made harder by the Internet, with netizens willing to leap on every perceived wrong move.


“Right now people (must) very, very be careful, but that doesn’t stop them to want to do the charity. I think it’s a good sign,” Chan said. (Reporting by Reuters Television, editing by Elaine Lies and Christine Kearney)


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Recipes for Health: Apple Walnut Galette — Recipes for Health


Andrew Scrivani for The New York Times NYTCREDIT:







A great rustic apple pie for Thanksgiving, this has very little butter in the pastry and a minimum of sweetening. It’s all about the apples.




1 dessert galette pastry (1/2 recipe)


Juice of 1/2 lemon


2 pounds slightly tart apples, like Braeburns, peeled, cored and cut in wedges (about 1/2 inch thick at the thickest point)


2 tablespoons (1 ounce) unsalted butter


1/4 cup (50 grams) plus 1 tablespoon dark brown sugar or turbinado sugar


1 teaspoon vanilla extract


1/4 cup lightly toasted walnuts, chopped


3/4 teaspoon cinnamon


1/4 teaspoon freshly grated nutmeg


1/4 cup (25 grams) almond powder


1 egg beaten with 1 teaspoon milk, for egg wash


1. Line 2 sheet pans with parchment. In a large bowl combine the lemon juice and apples and toss together.


2. Heat a large, heavy frying pan over high heat and add the butter. Wait until it becomes light brown and carefully add the apples and 1/4 cup of the sugar. Do not add the apples until the pan and the butter are hot enough or they won’t sear properly and retain their juice. But be careful when you add them so that the hot butter doesn’t splatter. When the apples are brown on one side, add the vanilla, 1/2 teaspoon of the cinnamon and the nutmeg, flip the apples and continue to sauté until golden brown, about 5 to 7 minutes. Stir in the walnuts, then scrape out onto one of the lined sheet pans and allow to cool completely.


3. Remove the pastry from the freezer and place it on the other parchment-lined baking sheet. Leave to thaw while the apples cool, but don’t keep it out of the freezer for too long. It’s easiest to handle if it’s cold and will thaw quickly. You just want it soft enough so that you can manipulate it.


4. Sprinkle the almond powder over the pastry, leaving a 2- to 3-inch border all around. Place the apples on top. Fold the edges of the dough in over the fruit, pleating the edges as you work your way around the fruit to form a free-form tart that is roughly 9 inches in diameter. Place in the freezer on the baking sheet for 45 minutes to an hour. This helps the galette maintain its shape.


5. Meanwhile preheat the oven to 350 degrees. Remove the galette from the freezer. Brush the exposed edge of the pastry with the egg wash. Combine the remaining tablespoon of sugar and 1/4 teaspoon cinnamon and sprinkle over the fruit and the crust. Place in the oven and bake 1 hour, until the crust is nicely browned and the apples are sizzling. Remove from the oven and allow to cool for at least 15 minutes. Serve hot, warm or at room temperature.


Yield: 1 9-inch galette, serving 8


Advance preparation: You can assemble this through Step 4 and freeze it for up to a month. Once it is frozen, double-wrap it in plastic. You can also freeze the galette after baking. Thaw and warm in a 350-degree oven for 10 to 15 minutes to recrisp the crust.


Nutritional information per serving: 259 calories; 11 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 3 grams monounsaturated fat; 50 milligrams cholesterol; 37 grams carbohydrates; 3 grams dietary fiber; 92 milligrams sodium; 5 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Hostess, unions agree to mediation









Hostess Brands Inc agreed in court on Monday to enter private mediation with its lenders and leaders of a striking union to try to avert the liquidation of the maker of Twinkies snack cakes and Wonder Bread.

Hostess, its lenders and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who advised against a more expensive, public hearing regarding the company's liquidation.

"My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter," Drain said.

The 82-year-old Hostess was seeking permission to liquidate its business, claiming that its operations have been crippled by a bakers strike and that winding down is the best way to preserve its dwindling cash. Hostess suspended operations at all of its 33 plants across the United States last week as it moved to start selling assets.

Heather Lennox, a lawyer for Hostess, said it would be hard for Hostess to recover from the damage it sustained due to the strike even if an agreement was forthcoming. Yet following the hearing, Hostess Chief Executive Officer Gregory Rayburn told reporters that there was always a chance Hostess could be saved.

"I think we have to see what unfolds," Rayburn said. "My impression is that the judge wants to understand the parties' positions and some of their logic, but it doesn't change our financial position.

"I'm happy to have the help," he added, referring to Drain's mediation following a breakdown of communication between Hostess and the union. "Maybe the judge will help. But can I handicap how it's going to go? No way."

A lawyer for Hostess' creditors' committee declined to comment.

The court-sanctioned mediation could make both sides more willing to give, said Nick Kalm, a communications consultant specializing in labor relations.

"It makes it much more likely that the company will put forward something that is less draconian... and the union will take it. The union realizes they are out of options," said Kalm.

BEHIND CLOSED DOORS

The BCTGM called the strike on November 9 after Hostess sought and won court approval to impose wage and benefit cuts.

Unlike other unions representing workers at Hostess, the BCTGM did not contest Hostess's action -- which allowed it to reject a collective bargaining agreement and impose its offer.

Given the fact that the union did not fight Hostess's motion in court, Judge Drain said it was "somewhat unusual to say the least, and perhaps illogical" that the union would then strike against it.

"Its an odd approach," Drain said. "Before thousands of people are put out of work it would seem to me worthwhile for both the union and the debtors to explore why that happened."

Drain also questioned whether the union had held discussions with competitors or potential suitors about a shiftover of jobs, saying the union's response to Monday's motion implied that it sees "meaningful sales available out there beyond the piecemeal sales that this motion contemplates."

A lawyer for the union did not immediately return a phone call seeking comment on whether such discussions had taken place.

BUYERS MAY EMERGE

Analysts have said Hostess' brands, which also include Nature's Pride, Dolly Madison and Drakes, are expected to draw interest from rivals including Flowers Foods, Pepperidge Farm owner Campbell Soup Co and Mexico's Grupo Bimbo.

Brian Boyle, a food industry investment banker at D.A. Davidson & Co, said it was hard to gauge the value of the Hostess assets, given that there are a lot of plants that are old and inefficient.

"The other wild card is whether you're going to see different buyers emerge for different segments of the business. So Flowers Foods, for instance, might want the cake segment and Bimbo could want the bread piece. So it comes down to 'are the parts greater than the whole?'," Boyle said. "In either case, significant labor and benefits concessions will be required."

Private equity firm Metropolous & Co said on Friday it was interested in pursuing the company, and on Monday, Fortune reported that Sun Capital Partners was interested. Sun Capital did not return a call seeking comment.

The company did have a potential white knight at one point, according to Hostess. Last spring, an outside equity investor had made a viable proposal that would help the company reorganize, it said, but the Teamsters union refused to agree to changes to the pension program and the outside investor walked away.

The company spent the summer and fall negotiating with all of the 12 unions trying to find a common path to reorganization, and did gain certain agreements with the Teamsters and many of the other unions, though not the BCTGM. At the same time the company started putting together a liquidation plan.

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