Former Hostess employees could be looking at "betrayal without remedy"

By WEEK Producer

December 10, 2012 Updated Dec 11, 2012 at 10:56 AM CDT

CENTRAL ILLINOIS -- As Hostess prepares to field offers for its products, former employees with pensions could be looking at a "betrayal without remedy".

The company has admitted to using employee pension funds to help keep operations going, as it tried to fight off bankruptcy.

It isn't clear how much money was taken or how many employees were affected. Experts say the move is probably legal because the money the company used did not come directly from employees.

The company acknowledged in August 2011 it had suspended pension contributions in an effort to turn things around.

Hostess's decision to stop funding pension plans was a key factor in the baker's strike which forced the company to suspend operations last month.