Judge to let Hostess liquidation proceed

Hostess Brands Inc. on Wednesday won permission from a U.S. bankruptcy judge to begin shutting down, and expressed optimism it will find new homes for many of its iconic brands, which include Twinkies, Drake's cakes and Wonder Bread.

U.S. Bankruptcy Judge Robert Drain in White Plains, New York authorized management, led by restructuring specialist Gregory Rayburn, to immediately begin efforts to wind down the 82-year-old company, a process expected to take one year.

"It appears clear to me that the debtors have taken the right course in seeking to implement the wind-down plan as promptly as possible," Drain said near the end of a four-hour hearing.

The judge authorized Hostess to begin the liquidation process one day after his last-ditch mediation effort between the Irving, Texas-based company and its striking bakers' union broke down.

Roughly 15,000 workers were expected to lose their jobs immediately, and most of the remaining 3,200 would be let go within four months.

"This is a tragedy, and we're well aware of it," Heather Lennox, a lawyer for Hostess, told the judge. "We are trying to be as sensitive as we can possibly be under the circumstances to the human cost of this."

Lennox said Hostess has received a "flood of inquiries" from potential buyers for several brands that could be sold at auction, and expects initial bidders within a few weeks.

Joshua Scherer, a partner at Perella Weinberg Partners, which is advising Hostess, said the company was in "active dialogue" over its Drake's brand with one "very interested" party that had toured a New Jersey plant on Tuesday.

He said that regional bakeries, national rivals, private equity firms and others have also expressed interest in various brands and that more than 50 nondisclosure agreements have been signed.

"These are iconic brands that people love," Scherer said.

While prospective buyers were not identified at the hearing, bankers have said rivals including Flowers Foods Inc. and Mexico's Grupo Bimbo SAB de CV were likely to be interested in some of the brands.

Representatives of neither company responded on Wednesday to requests for comment.

Scherer said Hostess could be worth $2.3 billion to $2.4 billion in a normal bankruptcy, an amount equal to its annual revenue. It also has about $900 million of secured debt and faces up to about $150 million of administrative claims.

Scherer expects a discount in this case because plants have already been closed and Hostess' value could fall further if the liquidation were dragged out.

"I've had buyers tell me, 'Josh, the longer it takes, the less value I'm going to be able to pay you,' " he said.

Hostess decided to liquidate on Nov. 16, saying it was losing about $1 million per day after the Bakery, Confectionery, Tobacco and Grain Millers Union, representing close to one-third of its workers, went on strike a week earlier.

The bakers union walked out after Drain authorized Hostess to impose pay and benefit cuts, which the International Brotherhood of Teamsters, Hostess' largest union, had accepted.

Hostess has about 33 plants, plus three it decided to close after the strike began, as well as 565 distribution centers and 570 bakery outlet stores.

Many of the 3,200 workers expected to stay on will help shut these properties and prepare them for sale. Hostess expects to need only about 200 employees by late March.

Rayburn, a former chief restructuring officer for the bankrupt phone company WorldCom Inc., said that letting 15,000 workers go now helps preserve their ability to obtain unemployment benefits.

"I need to maximize the value of the estate, but I need to do the best I can for my employees," he said.

Hostess filed for Chapter 11 protection on Jan. 11, its second bankruptcy filing in less than three years.

The case is In re: Hostess Brands Inc. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-22052.

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Jesse Jackson Jr. resigns, acknowledges federal probe

Chicago Tribune reporter Rick Pearson discusses the resignation of Rep. Jesse Jackson Jr. (D-Ill.). (Posted on: Nov. 21, 2012.)

Rep. Jesse Jackson Jr., the ambitious political heir to a powerful Chicago family whose once promising future collapsed amid federal ethics investigations and a diagnosis of mental illness, resigned Wednesday from the South Side congressional seat he held for 17 years.

Jackson's downfall represents perhaps the last major political casualty in the long-running corruption scandal that sent former Gov. Rod Blagojevich to prison in March on charges he tried to sell the Senate seat of President Barack Obama.

Jackson's political star was on the rise until allegations surfaced in late 2008 that his supporters offered to raise as much as $6 million for Blagojevich in return for the governor appointing him to the Senate seat vacated by the president-elect. Though Jackson was never charged in that case, a House ethics panel investigation into his actions was ultimately eclipsed by a federal criminal probe based in Washington, D.C., into alleged misuse of campaign dollars.

Jackson's resignation letter to House Speaker John Boehner, R-Ohio, was Jackson's first acknowledgment of the ongoing federal corruption investigation.

"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. "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."

Jackson's Washington legal team, which recently added former federal prosecutor Dan Webb, a Chicago partner at Winston & Strawn LLP, indicated that while Jackson's political fate has been settled, there's more to come in a court of law.

"We hope to negotiate a fair resolution of the matter but the process could take several months," they said in the statement.

Despite admitting "my share of mistakes," Jackson said his deteriorating health — and treatment for bipolar depression — kept him from serving as a "full-time legislator" and was the reason for his resignation.

Jackson's decision to step down came little more than two weeks after his re-election to another two-year term despite a lack of campaigning. He disappeared from the public eye in June after taking a medical leave from the House for what aides had initially described as exhaustion.

Jackson formed a political tag-team with his wife, Ald. Sandi Jackson, 7th, who over the years has received hundreds of thousands of dollars as a paid political consultant to her husband. Despite her role on the City Council, the couple maintained an upscale home in Washington and sent their children to school there. Sandi Jackson has refused to discuss her husband's political future or the investigation into his campaign spending. She could not immediately be reached for comment Wednesday.

Jackson's resignation immediately launched a field of possible successors —to be nominated and elected in special elections early next year — that could involve more than a dozen Democratic contenders, some of them political has-beens and others up-and-comers representing a new generation of leadership.

Under state law, Gov. Pat Quinn has five days to set dates for primary and general elections, which must be held by mid-March.

Some Democrats quickly offered to broker a nominee to avoid several African-American contenders splitting the vote in the heavily Democratic and majority black 2nd Congressional District, which could allow a white candidate to win. The district stretches from the South Side through the suburbs and as far as Kankakee.

Jackson's decision to leave office brought to an end a monthslong, consuming political game over the 47-year-old congressman's ability to serve his constituents.

In the congressman's public absence during the re-election campaign, both his father, civil rights leader the Rev. Jesse Jackson Sr., and Sandi Jackson sought to maintain the family's political power by offering generic statements about his health, thanking voters for their prayers and promising a return to Congress when his health permitted.

Ald. Carrie Austin, 34th, whose far South Side ward is in Jackson's district, said she wasn't surprised Jackson stepped down but was disappointed with him for misleading his constituents.

"He's lost the love and concern of the residents in his district," Austin said. "We gave him the benefit of the doubt because of his sickness, and it didn't have anything to do with that."

Jackson was first elected to Congress in 1995 in a special election to replace former Rep. Mel Reynolds, who was convicted on charges including sexual misconduct with a 16-year-old campaign aide and federal bank fraud.

In Washington, Jackson steadily moved up the ladder in a legislative chamber where seniority is a valued commodity to become Illinois' lone representative on the powerful House Appropriations Committee.

At home, he began building a local political organization in the South Side and south suburbs, an operation which successful supplanted the once powerful Shaw brothers, twins Bill and Bob, who held various posts.

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“Man of Steel” Trailer to Play Before “The Hobbit”

LOS ANGELES (TheWrap.com) – Director Zack Snyder has told MTV News that a trailer for “Man of Steel” will play before “The Hobbit: An Unexpected Journey,” when it opens on December 14.

“It’s fun. I can’t wait for ‘The Hobbit,’ so it will be fun to see our crazy ‘Man of Steel’ trailer and then enjoy ‘The Hobbit’ because tat’s going to be great,” Snyder told the network.

A teaser trailer for the feature was released earlier this year. “Man of Steel” opens on June 14, 2013.

Both films are distributed by Warner Bros., which declined to comment.

Earlier this month, it was announced that nine minutes of the “Star Trek” sequel “Star Trek Into Darkness” would be shown in 500 select theaters before the IMAX version of “The Hobbit.”

Russell Crowe stars in “Man of Steel.”

Movies News Headlines – Yahoo! News

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Well: Officials Warn Against Baby Sleep Positioners

Health officials are warning parents not to use a special device designed to help keep babies in certain positions as they sleep. The device, called a sleep positioner, has been linked to at least 13 deaths in the last 15 years, officials with two federal agencies said on Wednesday.

“We urge parents and caregivers to take our warning seriously and stop using these sleep positioners,” Inez Tenenbaum, the chairman of the Consumer Product Safety Commission, said in a statement.

The sleep positioner devices come primarily in two forms. One is a flat mat with soft bolsters on each side. The other, known as a wedge-style positioner, looks very similar but has an incline, keeping a child in a very slight upright position.

Makers of the devices claim that by keeping infants in a specific position as they sleep, they can prevent several conditions, including acid reflux and flat head syndrome, a deformation caused by pressure on one part of the skull. Many are also marketed to parents as a way to help reduce a child’s risk of sudden infant death syndrome, or SIDS, which kills thousands of babies every year, most between the ages of 2 months and 4 months.

But the devices have never been shown in studies to prevent SIDS, and they may actually raise the likelihood of sudden infant death, officials say. One of the leading risk factors for sudden infant death is placing a baby on his or her stomach at bedtime, and health officials have routinely warned parents to lay babies on their backs. They even initiated a “Back to Sleep” campaign in the 1990s, which led to a sharp reduction in sudden infant deaths.

With the positioner devices, if an infant rolls onto the stomach, the child’s mouth and nose can press up against a bolster or some other part of the device, leading to suffocation. Even if placed on the back, a child can move up or down in the positioner, “entrapping its face against a bolster or becoming trapped between the positioner and the crib side,” Gail Gantt, a nurse consultant with the Food and Drug Administration, said in an e-mail. Or the child might scoot down the wedge in a way that causes the child’s mouth and nose to press into the device.

“The baby’s movement may also cause the positioner to flip on top of the baby, trapping the baby underneath the positioner or between the positioner and the side of the crib,” she said.

Of the 13 babies known to have suffocated in a sleep positioner since 1997, most died after they rolled from their sides onto their stomachs. The Consumer Product Safety Commission has also received dozens of reports of babies who were placed on their sides or backs, “only to be found later in hazardous positions within or next to the product,” the F.D.A. said in a statement.

Many baby books for new parents specifically urge against using sleep positioners, and the American Academy of Pediatrics does not support their use for SIDS prevention. Though the F.D.A. has never approved the positioners for the prevention of SIDS, it has in the past approved a number of the devices for the prevention of gastroesophageal reflux disease and flat head syndrome. But the agency said that in light of the new safety data, it believed any benefits from using the devices were outweighed by the risk of suffocation.

As of Wednesday, the agency is explicitly advising parents to stop using sleep positioners, and it has asked manufacturers of the devices to submit clinical data showing that the benefits of their products outweigh the risk of serious harm. In addition to avoiding the devices, experts say, parents should keep things like pillows, comforters, quilts and bumpers away from their infants and their cribs. Soft bedding can increase the likelihood of a baby suffocating.

“The safest crib is a bare crib,” Dr. Susan Cummins, a pediatric expect with the F.D.A., said in a statement. “Always put your baby on his or her back to sleep. An easy way to remember this is to follow the ABC’s of safe sleep – Alone on the Back in a bare Crib.”

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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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Warrants issued, no arrests in Indianapolis explosion

Indianapolis investigators have opened a criminal homicide probe into the explosion that killed two people and damaged or destroyed dozens of homes earlier this month. (Nov. 20)

Investigators said Tuesday that no arrests have been made in connection with an Indianapolis house explosion that killed two people and destroyed at least five homes, but that authorities were still serving search warrants and questioning people.

Prosecutor Terry Curry told The Indianapolis Star on Tuesday that search warrants had been executed and people were questioned, but he declined to discuss who was questioned or where the warrants had been served.

Curry spokeswoman Brienne Delaney told The Associated Press on Tuesday evening that no arrests had been made.

“It's still a fluid situation,” she said. It isn't clear how many people have been questioned.

The investigation into the Nov. 10 explosion is believed to be focusing on a house occupied by Monserrate Shirley and her boyfriend, Mark Leonard. The couple and Shirley's 12-year-old daughter were away at the time of the explosion, but the young couple next door died when their house was destroyed.

Indianapolis Homeland Security Director Gary Coons said in a statement released Tuesday night that investigators were still at work at the blast-damaged neighborhood on Indianapolis' south side.

“The investigation is still ongoing and we are still processing the scene. No arrests have been made at this time,” his statement said.

Attorney Randall Cable said earlier Tuesday that Shirley and Leonard had been cooperating with investigators and were “bewildered” by Curry's announcement Monday that the investigation was considered a criminal homicide.

City arson investigators and the Bureau of Alcohol, Tobacco, Firearms and Explosives concluded the blast was not an accident, Curry told the AP earlier Tuesday. The case is classified as a criminal homicide investigation because of the deaths of Jennifer and John Longworth.

Curry declined to discuss details of the investigation or the search warrants, which he said would remain sealed until — or if — any criminal charges are filed.

Officials have said they believe natural gas was involved in the explosion and that they are focusing on appliances as the cause. The explosion caused an estimated $4.4 million in damage.

Curry said investigators had considered homicide a possibility all along, but it wasn't until police and the ATF ruled out an accidental cause that it became a criminal probe.

He declined to say whether investigators had any suspects or if there was any physical evidence or possible motive that the blast had been deliberately set.

“In terms of any intent, I can't speak to that,” Curry said.

Cable said in a statement that Shirley and Leonard have “cooperated fully” with investigators and that they want the cause “of this horrific and saddening tragedy to be determined.”

Fire Capt. Rita Burris said Tuesday that about 15 heavily damaged homes are “on hold,” meaning that residents have limited access because of the investigation.

Once the on-scene work is complete, she said inspectors will have to determine if those homes are safe enough to enter or if they must be demolished.

“That's a two-fold, two-layer thing that these homeowners are going to have to deal with,” Burris said.

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“Life of Pi” and “Rise of Guardians” Debut, but It’s Still “Twilight” Time at Box Office

LOS ANGELES (TheWrap.com) – Ang Lee‘s lyrical epic “Life of Pi,” the computer-animated 3D holiday tale “Rise of the Guardians” and the “Red Dawn” reboot all debut in theaters Wednesday, as the holiday movie season kicks into high gear.

But the current No. 1, “Twilight: Breaking Dawn 2,” will almost surely out-earn the newcomers and dominate the Thanksgiving weekend box office, with a second week that analysts are projecting will hit $ 65 million over the five days. DreamWorks Animation‘s “Rise of the Guardians” will wind up with around $ 55 million and run second, they say.

Add in sturdy holdovers like Sony’s record-breaking James Bond movie “Skyfall” and Disney’s animated “Wreck-It Ralph,” along with expanding awards hopefuls “Lincoln” and “Silver Linings Playbook,” and it shapes up as a very busy weekend at the cineplexes.

Summit Entertainment’s “Breaking Dawn 2″ remains in 4,070 theaters after rolling up $ 141 million in its U.S. debut last weekend.

That was the year’s fourth best opening – behind “The Avengers,” “Dark Knight Rises” and “The Hunger Games” – but fell short of the franchise-best $ 142.8 million set by “New Moon” in 2009. “Breaking Dawn” is expected to play more strongly abroad than domestically, and the first-week numbers reflect that: It took in nearly $ 200 million in its first week of release overseas.

“In the U.S., it didn’t get that finale bump that the last Harry Potter movie did, which was surprising,” Exhibitor Relations senior analyst Jeff Bock told TheWrap, “Its fan base was committed, but Summit couldn’t expand it beyond that.”

“Harry Potter and the Deathly Hallows, Part 2″ opened to $ 169 million in 2011, well ahead of “Deathly Hallows 2,” which opened to $ 125 million the previous year.

“Skyfall,” which took in $ 41 million in its second week as it became the top-grossing Bond film of all time, is looking at a five-day total of around $ 39 million, the analysts say. Its worldwide gross now stands at $ 672 million, $ 507 million of which has come from overseas.

Buoyed by surprisingly strong results, Disney is expanding “Lincoln” into roughly 2,000 theaters, up from 1,775, on Friday. The DreamWorks Oscar contender was a surprise No. 3 finisher with $ 21 million last weekend, well above analysts’ and the studio’s projections. It’s projected to finish with $ 24 million over the long weekend.

Among the newcomers, Oscar contender “The Life of Pi” is the most difficult to peg in terms of box-office potential.

It’s hard to imagine a tale tougher to bring to the screen than Yann Martel’s 2001 saga of an Indian youth lost at sea with a ravenous Bengal tiger aboard his small lifeboat and their ensuing adventures. But Lee brought martial arts (“Crouching Tiger, Hidden Dragon”) and gay cowboys (“Brokeback Mountain”) into the movie mainstream, and he’s employed the highest-tech digital tools to bring David Magee’s adaptation to life in 3D.

Indian Suraj Sharma, who was 17 and had no acting experience when he shot “Pi,” plays the lead and spends a good bit of the film alone in a boat with the tiger.

The critics love it (92 percent positive on Rotten Tomatoes), calling it gorgeous, innovative and a provocative and soulful examination of faith. Those are admirable qualities in a film, but hardly requisites for – or a guarantee of – box office success.

Fox has the PG-rated “Pi” in 2,700 theaters and it will have the advantage of premium pricing going for it. Analysts see it opening with about $ 25 million over the five days, and feel its long-term playability will hinge on word-of-mouth and awards buzz.

In terms of the box office, the most comparable film could be last year’s Martin Scorsese-directed 3D family adventure “Hugo.” Paramount opened that film around the same time last year to $ 11 million, and it went on to make $ 73 million, $ 185 million worldwide.

With its international cast and exotic settings, “Pi” is another example of a film expected to perform far better internationally than in the U.S. Fox is rolling it out in Taiwan Tuesday, China Wednesday and Hong Kong, India and Puerto Rico this weekend. With Lee’s following in China and young star Sharma expected to draw crowds in India, those two markets should give it fast start overseas.

“Pi” was produced for $ 120 million by Lee, Fox 2000 and special effects firm Rhythm and Hues.

Distributor Paramount is rolling out DreamWorks Animation‘s computer animated family film “Rise of the Guardians” on 3,500 3D screens.

The holiday rollout is a natural for the PG-rated “Rise of the Guardians,” which has a star-studded voice cast, and is executive produced by Guillermo Del Toro and produced by Gary Goetzman.

Based on the William Joyce’s “Guardians of Childhood” series, it tells the tale of Jack Frost (Chris Pine), who gets help from Santa Claus (Alec Baldwin), the Tooth Fairy (Isla Fisher) and the Easter Bunny (Hugh Jackman) after the evil Pitch (Jude Law) threatens the children of the world.

Awareness of the film is strong, and the critics think it’s pretty good. Seventy percent of the reviews on Rotten Tomatoes are positive, 67 percent at Movie Review Intelligence. DreamWorks Animation has been on a hot streak, and this its first release since “Madagascar 3: Europe’s Most Wanted,” which has made over $ 735 million worldwide this year.

“Red Dawn” is a remake of the 1984 John Millius war film that helped launch the careers of young stars Patrick Swayze, Lea Thompson, Jennifer Grey and Charlie Sheen. Released at the peak of the Cold War, its populist and patriotic themes resonated strongly. In that film, Swayze’s character leads a group of teens who turn guerrilla fighters to resist Soviet and Cuban invaders who are occupying their state.

Shot in 2009, the “Red Dawn” reboot was to have been released in 2010, but was delayed by the financial troubles of the studio behind it, MGM.

Since then, the careers of several of the film’s stars have taken off. Since shooting “Red Dawn,” Chris Hemsworth has starred in “Thor,” “The Avengers” and “Snow White and the Huntsman,” while Josh Peck was featured in “The Hunger Games.” Josh Hutcherson, Adrianne Palicki, Isabel Lucas and Jeffrey Dean Morgan co-star.

This “Red Dawn” plays more like an action film and is less jingoistic than the original, and FilmDistrict has marketed that way. In addition to targeting fan boys at the Fantastic Fest in Austin, Texas, and college campuses, “Red Dawn” has been show at more than 100 military bases. The cast did a special screening at Port Hueneme Naval Base in Oxnard, Calif.

Speaking of militaries, while the film was on the shelf: the filmmakers digitally turned the invaders from Chinese into North Koreans after angry denunciations of the portrayals from the Beijing press. The switch shouldn’t hurt at the Chinese box office, either.

FilmDistrict is opening the PG-13-rated “Red Dawn” in 2,600 theaters. The original made the equivalent of $ 90 million when adjusted to today’s ticket prices, while this reboot will be fortunate to make half that amount. A five-day total of around $ 15 million is what the analysts are projecting for the opening.

Fox Searchlight is rolling out “Hitchcock,” starring Anthony Hopkins as the late director Alfred Hitchcock, in 17 theaters on Friday.

Directed by Sacha Gervasi, with a screenplay from John G. McLaughlin, the film explores the relationship between Hitchcock and his wife and partner Alma Reville (Helen Mirren) while they were working on “Psycho,” one of his most successful films.

Scarlett Johansson, Danny Huston, Jessica Biel, Toni Collette, Michael Wincott, and James D’Arcy co-star in the Montecito Picture Company production.

“Hitchcock” premiered at the AFI Film Festival and has been well-received by the critics. It has a 76 percent positive rating on Rotten Tomatoes.

Fox Searchlight plans to expand the film gradually over the next three weeks, ahead of its national release on December 14, when it will be on between 500 and 600 theaters.

The Weinstein Company is expanding its Oscar hopeful “Silver Linings Playbook” into 420 theaters. The dark romantic comedy is directed by David O. Russell and stars Jennifer Lawrence, Bradley Cooper and Robert De Niro.

“Silver Linings Playbook” averaged $ 28,652 on 16 screens in its debut and was to have expanded into 2,000 theaters on Wednesday. But the Weinstein Co. shifted gears last week and decided on a more gradual platform release in hopes of building awards buzz. The Weinstein Co. knows Oscar campaigns; they were behind the last two Best Picture winners, “The King’s Speech” and “The Artist.”

Movies 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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Hostess, union fail to reach deal

Hostess Brands Inc, the bankrupt maker of Twinkies and Wonder Bread, said on Tuesday that it failed to reach a deal in mediation with the Bakery, Confectionary, Tobacco and Grain Millers Union.

The company, which operates three facilities in Illinois, including in Schiller Park and Hodgkins, said it will have no further comment until a hearing scheduled for Wednesday before the U.S. Bankruptcy Court for the Southern District of New York.

A representative of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) did not immediately respond for comment.

The ailing company, which also makes Wonder Bread and Drake's cakes, went to bankruptcy court on Monday to seek permission to liquidate its business, claiming that its operations were crippled by the bakers' strike and that winding down was the best way to preserve its dwindling cash.

But Bankruptcy Judge Robert Drain of the Southern District of New York urged the sides into a private mediation, prompted by a desire to protect the more than 18,000 jobs at stake.

The 82-year-old Hostess runs 33 bakeries, 553 distribution centers, about 5,500 delivery routes and 527 bakery outlet stores throughout the United States. Bakery operations ceased last week, though product deliveries to stores continued in order to sell already-made products.

The company has blamed union wages and pension costs for contributing to its unprofitably. Hostess Chief Executive Gregory Rayburn has also said the company's labor contracts have deterred would-be bidders for the company and its assets.

Aside from its unionized workforce, analysts, bankers and restructuring experts have said that a fleet of inefficient and out-of-date factories has also eaten up costs. They have said the brand names were likely to be more valuable once they were separated from the factories and sold to non-union competitors.

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4th quarter: 49ers 27, Bears 7

The immediate futures of the Chicago Bears and San Francisco 49ers were in the hands of backup quarterbacks after first Jay Cutler and then Alex Smith were ruled out of Monday night’s pivotal NFC battle at Candlestick Park because of concussions.

Jason Campbell's rough night got even worse late in the third quarter when the Bears quarterback was intercepted by 49ers safety Dashon Goldson. That set up a 32-yard field goal by David Akers that extended San Francisco's lead to 30-7 with 11:46 to play in the game.

On the Bears' next series, Campbell was sacked for the sixth time, with 49ers defensive end Aldon Smith getting a half-sack on the play for 4.5 on the night.

More bad news: Rookie receiver Alshon Jeffery was ruled out for the game with a knee injury in the third quarter. It was Jeffery's first game back from a broken hand suffered in Week 5.

Campbell finally had produced a bright spot when he hit Brandon Marshall on a 13-yard scoring pass with 3:43 to go in the third quarter to bring the Bears to within 27-7, and that was the score entering the final period. It capped a 13-play, 74-yard drive.

Second-year man Colin Kaepernick, starting for the 49ers in place of Smith, had the San Francisco offense humming. His 10-yard touchdown toss to Michael Crabtree on the 49ers' first possession of the third quarter extended their lead to 27-0 over the befuddled Bears with 11:12 to play in the period.

The big gain of the five-play, 62-yard drive came on a 32-yard toss from Kaepernick to Mario Manningham.

Campbell's slow start didn't get any better at the start of the third quarter, when the Bears quarterback was sacked for the fourth time and the team quickly was forced to punt trailing 20-0.

A 37-yard field goal by Akers -- set up by a 49ers interception of a Campbell pass -- put San Francisco ahead 20-0 with 6:32 left in the first half, and that was the score at intermission.

Kendall Hunter's 14-yard run gave the 49ers a 17-0 lead with 12:40 remaining in the second quarter. It came at the end of a methodical eight-play, 96-yard drive.

Kaepernick dazzled from the outset. He hit tight end Vernon Davis on a three-yard touchdown pass to put San Francisco ahead 10-0 with 6:14 to play in the first quarter. The TD was set up when Kaepernick connected with receiver Kyle Williams -- son of White Sox executive Ken Williams -- on a 57-yard pass play.

Kaepernick also sparkled on the game's opening drive. He directed a nine-play, 68-yard march that resulted in a 32-yard Akers field goal and a 3-0 lead with 10:37 to play in the quarter.

For the half, Kaepernick hit 12 of 15 passes for 184 yards, a TD and no interceptions for a passer rating of 140.0. Campbell struggled, hitting on only 4 of 8 passes for 21 yards for a passer rating of 16.7.

Campbell's first drive was a three-and-out that ended with him being sacked on a third-and-2 play. The Bears' second offensive series also ended with a punt, and Campbell was intercepted early in the second quarter. He was sacked three times in the half.

Marshall, Cutler's favorite target, was targeted only once in the first half and had no receptions. He finally made his first catch -- for eight yards -- on the Bears' second possession of the third quarter.

Matt Forte's 35 yards rushing was pretty much it for the Bears' offense in the opening half. The 49ers had 249 yards of offense in the first half, the Bears had 35.

The stakes for the Bears were high: With the Green Bay Packers (7-3) nipping at the Bears’ first-place standing in the NFC North, Monday night’s outcome took on added ramifications.

The last time the Bears beat the 49ers in San Francisco, Mike Ditka was the coach, Walter Payton was leading the ground attack and 350-pound defensive tackle William Perry was unveiled as a backfield threat. The Bears were 0-7 at San Francisco since then.

Times have changed since that 26-10 Bears win in 1985, but the stakes remain just as high.
 
The Bears entered Monday night’s game 2-2 in prime-time games this season. Both of those wins were on "Monday Night Football" against Dallas and Detroit.
 
Under coach Lovie Smith, the Bears entered 9-2 (.818) on "Monday Night Football," including wins in seven out of their last eight.

fmitchell@tribune.com

Twitter@kicker34

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