Jesse Jackson Jr. resigns, acknowledges federal probe

Rep. Jesse Jackson resigned from Congress Wednesday, saying in a letter that he is cooperating with a federal investigation "into my activities" but blaming his health problems for his decision to step down just two weeks after his re-election.

Jackson's letter to House Speaker John Boehner was his first acknowledgment of the ongoing corruption probe into his alleged misuse of campaign dollars.

"I am doing my best to address the situation responsibly, cooperate with the investigators, and accept responsibility for my mistakes, for they are my mistakes and mine alone," Jackson said in the two-page letter dated Nov. 21. "None of us is immune from our share of shortcomings or human frailties and I pray that I will be remembered for what I did right."

Despite his admission of "my share of mistakes," Jackson said his deteriorating health was the reason he was quitting. He has been on medical leave since June while receiving treatment for bipolar depression.

"Against the recommendations of my doctors, I had hoped and tried to return to Washington and continue working on the issues that matter most to the people of the Second District. I know now that will not be possible," Jackson said in the letter.

"My health issues and treatment regimen have become incompatible with service in the House of Representatives. Therefore, it is with great regret that I hereby resign as a member of the United States House of Representatives, effective today, in order to focus on restoring my health," Jackson wrote.

The congressman could not be reached.

Hours after the letter was submitted, Jackson's attorneys -- including former federal prosecutor Dan Webb -- released a statement saying any "resolution" of the federal probe could be months away.

“Mr. Jackson is cooperating with the investigation," the statement read. "We hope to negotiate a fair resolution of the matter but the process could take several months. During that time, we will have no further comment and urge you to give Mr. Jackson the privacy he needs to heal and handle these issues responsibly.”

Jackson, 47, won election this month while being treated at the Mayo Clinic in Rochester, Minn. and issued a statement on election night saying he would return to work once his doctors approved.

"Once the doctors approve my return to work, I will continue to be the progressive fighter you have known for years," said Jackson, no longer a patient at Mayo. "My family and I are grateful for your many heartfelt prayers and kind thoughts. I continue to feel better every day and look forward to serving you."

He has not appeared in the House since June 8. Nor did he stage a campaign event -- or even run a TV ad. Jackson advanced to the general election after defeating a one-term member of Congress, Debbie Halvorson, in a March primary.

The next Congress will be sworn in Jan. 3 and Jackson would have been required to take the oath of office before being allowed to vote.

News of the resignation on the eve of Thanksgiving, when Congress was not meeting and many Washingtonians were traveling, seemed to take even Jackson staffers by surprise.
 
His press secretary, Frank Watkins, said Wednesday morning that he didn’t know anything about a possible resignation. Watkins attributed the rumors to press speculation.

House Minority Leader Nancy Pelosi, D-Calif., said in a statement that she had spoken to Jackson and his father, the Rev. Jesse Jackson, earlier in the afternoon.
 
“As he works to address his health, our thoughts and prayers are with him, his wife Sandi, his children as well as his parents," she said in a statement. "We are grateful to him and his family for their longstanding record of public service to our country.”

The House adjourned Friday and reconvenes at 2 p.m. Tuesday.  Protocol calls for Jackson's letter to be placed before the House on Tuesday and his resignation noted then, an official said. Normally the House has 435 members, but there is now one vacancy, so Jackson's will be a second.

Under Illinois law, Gov. Pat Quinn, a fellow Democrat, would call a special election to fill Jackson’s 2nd District congressional seat, which extends from Chicago’s South Side to Kankakee. Quinn has five days to set a schedule for the election. Election law says it must be held within 115 days.

Jackson's resignation, long suspected by political insiders, set off a scramble with as many as a dozen names of potential successors already surfacing. They range from political has-beens to up-and-comers in the south suburban district.

Jackson has been under investigation by the House Ethics Committee for alleged improprieties related to his bid to win appointment in 2008 to the Senate seat that had been held by President Barack Obama. A Jackson emissary is alleged to have offered to raise up to $6 million in campaign funds for disgraced former Gov. Rod Blagojevich in exchange for the governor appointing Jackson to the Senate seat.

Blagojevich is serving a prison term for corruption convictions including trying to sell or trade the Senate seat.

After the March primary election, the congressman’s aides belatedly announced his medical leave, which at first was blamed on “exhaustion.”

He is the son of the Rev. Jesse Jackson, the civil rights leader, and the husband of Chicago Ald. Sandi Jackson, 7th.

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Tom Hanks, Will Farrell offer custom recordings

NEW YORK (AP) — Imagine having William Shatner supply your outgoing voicemail message. Or maybe you’d prefer Morgan Freeman coolly telling callers to wait for the beep. Or perhaps having Betty White joke around is more your speed.

All it takes is $ 299 and some luck.

The advocacy group Autism Speaks is offering custom-recorded messages from those celebrities as well as Will Ferrell, Carrie Fisher, Tom Hanks, Derek Jeter, Leonard Nimoy, Patrick Stewart and Ed Asner.

From Dec. 3 to Dec. 9, a limited number of 20-second long MP3 messages will be recorded by each celebrity on a first-come, first-served basis for fans to do with as they wish. All requests must be of the PG variety.

Asner, the curmudgeonly Emmy Award winner of “The Mary Tyler Moore Show” and “Lou Grant,” dreamed up the unusual fundraiser with his son Matt, who works for Autism Speaks.

“I think people will get a charge out of it,” says Asner, who is currently on Broadway in the play “Grace.” ”I’ll probably say, ‘What are you wearing?’ Or, ‘Take it off.’ Something like that.”

All proceeds will support autism research and advocacy efforts.

If he could get a message from one of the other stars participating, which would Asner want?

“I’m awfully stuck on Will Ferrell, having been subjected to him in ‘Elf,’” Asner says. “But they’re all such standouts — Patrick Stewart, Leonard Nimoy, Shatner. The list doesn’t stop. Even Betty White,” he adds about his “MTM” co-star. “She’s still got some good left in her.”

Entertainment News Headlines – Yahoo! News

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Ecstasy Treatment for Post-Traumatic Stress Shows Promise

Gretchen Ertl for The New York Times

ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.

Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.

The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.

“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”

In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.

The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.

The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.

But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.

The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”

The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.

A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.

“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”

In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.

“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.

This article has been revised to reflect the following correction:

Correction: November 21, 2012

An article on Tuesday about using MDMA, or Ecstasy, in combination with psychotherapy to treat post-traumatic stress described incorrectly the office arrangement that a husband-and-wife team use to conduct therapy sessions using MDMA. The couple, Michael and Ann Mithoefer, hold the sessions in an office in a converted house; they do not conduct the sessions in their home office. And because of an editing error, an accompanying picture carried an incorrect credit. The photograph of the Mithoefers was taken by Hunter McRae, not by Gretchen Ertl.

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Judge rejects 9/11 suit against United

United Airline employees help passengers at the check-in counter in Terminal 1 at Chicago O'Hare International Airport. (Stacey Wescott, Chicago Tribune / November 15, 2012)

Reuters

9:48 a.m. CST, November 21, 2012

United Airlines bears no responsibility for suspected security lapses at a Maine airport that allowed hijackers onto the American Airlines plane that crashed into one of the World Trade Center towers on Sept. 11, 2001, a federal judge ruled.

U.S. District Judge Alvin Hellerstein on Wednesday granted a request by United and its parent United Continental Holdings Inc. to dismiss negligence claims brought by Larry Silverstein, the leaseholder of the World Trade Center property.

The decision concerned the destruction of 7 World Trade Center, the North Tower that collapsed hours after being pierced by debris stemming from the crash of AMR Corp.'s American Airlines Flight 11 into 1 World Trade Center.

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Prosecutors seek raw footage of Chief Keef at gun range

Cook County prosecutors trying to subpoena an online video showing South Side rapper Chief Keef firing a rifle at a gun range argued in court today that the uncut version of the footage is essential in determining whether the teen violated his probation.

The video was shot earlier this year when the 17-year-old rapper did an on-camera interview with Pitchfork Media, an Internet-based music publication, at a gun range in New York. In the video, Chief Keef, whose real name is Keith Cozart, is reportedly seen with a rifle.

Prosecutors have argued that the rapper violated the terms of his probation by holding that rifle following his conviction for pointing a gun at a Chicago cop last year.

Assistant State's Attorney Jullian Brevard today told Juvenile Court Judge Carl Anthony Walker that the full uncut version of the video, including portions that weren't made public by Pitchfork, is needed by prosecutors to ensure that it is in fact Chief Keef holding the rifle in the video.

"In today's media age, it could be spliced," Brevard said of the current video being shown online.

A lawyer for Pitchfork, Travis Life, objected, telling Walker that the release of the uncut video would violate Pitchfork's First Amendment protections.

"There are other means by which (prosecutors) can collect that information," Life said at the end of the 50-minute hearing. "Why not go through a witness that can provide the exact same information?"

Without making a ruling, Walker instead set the matter over until Dec. 5.

Chicago police have been looking into whether Chief Keef and his allies played a role in the Sept. 4 slaying of aspiring rapper Lil Jojo.

The slaying garnered national attention after Chief Keef sent a taunting tweet about the slain 18-year-old, whose real name was Joseph Coleman, hours after he was killed. Chief Keef, who recently signed a deal with Interscope Records, received mostly negative feedback from his more than 200,000 Twitter followers before he claimed his account had been hacked.

jgorner@tribune.com

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Tablets, discounters top U.S. holiday shopping lists: Reuters/Ipsos

(Reuters) – Move over computers, your sleek siblings are the prized gift of the holidays.

One-third of U.S. consumers are thinking about buying an electronic tablet this holiday season, according to a new Ipsos poll conducted for Thomson Reuters. And 22 percent of those who want one of the hot devices said they plan to cut back on other holiday purchases in order to afford them.

But the new, smaller tablet from industry leader Apple Inc – the iPad mini – is not taking the world by storm. Only 8 percent named the iPad mini as their first choice, the same percentage that said they would like to buy a Microsoft Corp Surface tablet.

“There has been a lot of controversy about the fact that the iPad mini is $ 329, that the price might not be right,” said Jharonne Martis, director of consumer research for Thomson Reuters.

Still, Apple’s full-size iPad remains the leader, with 25 percent picking it as the tablet of choice while 15 percent want to buy Amazon.com Inc’s Kindle Fire, and another 15 percent want a Samsung Galaxy device.

Apple sold about 11 million iPads during the 2011 holiday quarter, and this year analysts expect it to sell about 16 million iPads and 8 million iPad mini tablets, Martis said.

Retailers have prepared for a big tablet season. Walmart, for example, doubled its orders for iPads and other tablets and will offer an iPad 2 with a $ 75 gift card for $ 399 as one of its specials on Thanksgiving night.

Laptops are still on the wish lists for 32 percent of respondents, while 18 percent would like to buy desktop computers and only 13 percent are looking for ultrabooks.

SPENDING LESS OR STILL UNSURE

Meanwhile, retailers may want shoppers to believe the holiday shopping season begins sometime in September. But the poll shows that most consumers still are waiting until around Thanksgiving to start their holiday shopping.

Walmart, Toys R Us and others started promoting their layaway plans in September as a way to reserve hot items.

While 11 percent said they were using layaway more this year than last year, 71 percent said they were not.

Seventy-two percent have done no shopping yet or less than a quarter of it, the poll found.

“The fact that 72 percent haven’t really started yet reinforces why Black Friday is coined the official beginning of the holiday season because that’s truly when shoppers start to open their wallets,” Martis said.

Most of that shopping will still take place in stores, despite the rise of online shopping and fears of shoppers using physical stores as showrooms for products they will buy online using their mobile devices.

“It is still growing, but it is still a very small portion of retail sales,” Martis said of mobile shopping.

Going to a mix of different types of stores is the plan for 42 percent of the respondents planning to go to stores, while 31 percent plan to do most of their holiday shopping at a discount chain such as Walmart, Target or Kmart, which will all be open for at least some of Thanksgiving Day to court shoppers.

The U.S. economy and possible tax hikes continue to be a concern for some, with 28 percent saying that they are spending less this year because of the fiscal cliff, though 58 percent said the fiscal cliff was not affecting their holiday spending plans.

Two-thirds of shoppers said they were planning to spend the same amount as last year or were unsure about their spending plans, while 21 percent plan to spend less and 11 percent plan to spend more. Also, 60 percent said are choosing to shop closer to home to save on gas.

Contrary to the cry of some traditional retailers, “show rooming” is not the norm for most people.

When asked how, if at all, they use a mobile device while in stores, 63 percent said they do not even pull out their smartphones while shopping. Fifteen percent compare prices online and 14 percent said they research products.

Amazon is the top online retailer shoppers plan to visit more than they did last year, with 42 percent picking it, 38 percent choosing Walmart, 23 percent selecting Target and 14 percent picking EBay.

Physical stores remain the top destination, with 26 percent planning to shop primarily at stores and only 14 percent planning to shop primarily online.

The poll is the first in a series that Ipsos will conduct during the holiday season.

The findings are from an Ipsos poll conducted for Thomson Reuters from November 15-19, 2012, with 1,169 American adults interviewed online. Results are within the poll’s credibility intervals, a tool used to account for statistical variation in Internet-based polling. The credibility interval was plus or minus 3.3 percentage points.

(Additional reporting by Brad Dorfman; Editing by Edward Tobin and Leslie Gevirtz)

Gadgets News Headlines – Yahoo! News

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“Secret Disco Revolution” Gets U.S. Release

LOS ANGELES (TheWrap.com) – Screen Media Films has acquired U.S. theatrical rights to the documentary “Secret Disco Revolution,” featuring interviews with many 70′s music icons, including Gloria Gaynor, The Village People, and Kool and the Gang.

ScreenMedia plans a June 2013 U.S. theatrical run of the documentary, the company announced Monday.

Written, directed, and produced by Kastner, the film looks into the disco movement and many of its key figures.

“For anyone that grew up with disco this film will transport you back in time while filling in the blanks to what you didn’t even realize was happening around you,” said Suzanne Blech, president of Screen Media Films.

“If you weren’t around at the time to get caught up in the disco craze, the music and the moves will make you want to get up and dance,” Blech said.

Entertainment One Films International (eOne) has also sold the film to a number of other territories, including Japan (Kadokawa), Italy (Sky Arts) and Germany, Austria, Switzerland and France, all through ZDF Arte.

The Screen Media deal was negotiated by Blech and Charlotte Mickie from eOne, along with Andrew Herwitz from The Film Sales Company, on behalf of the filmmakers.

Music News Headlines – Yahoo! News

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Ecstasy Treatment for Post-Traumatic Stress Shows Promise

Gretchen Ertl for The New York Times

ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.

Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.

The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.

“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”

In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.

The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.

The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.

But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.

The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”

The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.

A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.

“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”

In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.

“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.

This article has been revised to reflect the following correction:

Correction: November 20, 2012

An earlier version of this article described incorrectly the office arrangement the Mithoefers use to conduct therapy sessions using MDMA. They hold the sessions in an office in a converted house, but they do not conduct the sessions in their home office.

Read More..

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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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 (BCTGM), agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who preferred it to the 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 is seeking permission to liquidate its business, claiming that its operations had been crippled by a bakers strike and that winding down operations 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.

Hostess faces several objections to its liquidation plan.

The U.S. Trustee, an agent of the U.S. Department of Justice who oversees bankruptcy cases, said in court documents it is opposed to the wind-down plan because Hostess plans improper bonuses to company insiders.

Several unions also objected to the company's plans, saying they made "a mockery" of laws protecting collective bargaining agreements in bankruptcy. The Teamsters, which represents 7,900 Hostess workers, said the company's plan would improperly cut the ability of remaining workers to use sick days and vacation.

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