Hostess Brands Inc., the maker of the iconic Twinkies snack cake, will square off in a bankruptcy court on Monday against an agent of the U.S. Justice Department, who says the wind-down plan is too generous to management.

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

The 82-year-old Hostess wants permission to pay senior management a bonus of up to 75% of their annual pay so they will stay on and help wind-down the business.

The U.S. Trustee, Tracy Hope Davis, planned to ask New York Bankruptcy Court Judge Robert Drain at Monday’s afternoon hearing to appoint an independent trustee to oversee the sales of the company’s assets.

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.

Read the entire Reuters article here.  My take?  It doesn’t make a whole heck of a lot of business sense to pay bonuses to the Ho-Ho’s who brought Hostess to bankruptcy, but then that’s why I’m not in upper management…