Kansas, R.I. Fight Debtors' Bid for Surety Bonds

By Peter Mantius, Northern Bureau ChiefState officials in Kansas and Rhode Island are strenuously objecting to efforts by debtors in a federal bankruptcy case in New York to claim a portion of funds held as mandated self-insurance security for payments of workers’ compensation claims.On Dec. 30, lawyers representing the former Hostess Brands Inc. asked the court to estimate the amount of excess funds available under letters of credit held by the Kansas Department of Labor and the Rhode Island Department of Labor and Training.Judge Robert D. Drain of U.S. Bankruptcy Court for the Southern...