Judge Edgardo Ramos
Hostess was a participating employer in the Bakery and Confectionery Union and International Health Benefits and Pension Fund (B&C Fund). On Dec. 15, 2011, The B&C Fund terminated Hostess’ participation and assessed it $919,806. In Hostess’ 2012 application for Chapter 11 bankruptcy protection, appellant labor union argued that under collective bargaining agreements with its 35 locals (CBAs), Hostess owed its unionized employees $14 million in Pension Wage Deferrals that accrued after Jan. 11, 2012. District court upheld bankruptcy court’s rejection of appellant’s application for administrative expense treatment of Hostess’ unpaid post-petition B&C Fund contributions. Bankruptcy court correctly concluded Hostess’ duty and ability to contribute to the B&C Fund ended pre-petition in December 2011, when the B&C Fund ended Hostess’ status as an “employer.” When the B&C Fund terminated Hostess on Dec. 10, 2011, under the terms of the incorporated B&C Fund Agreement and Declaration of Trust, Hostess ceased to be an “employer” as defined in the Trust Agreement and the B&C Fund’s right to receive contributions from Hostess ceased.
