11 U.S.C. 507(a)(4)

Judge Carey Holds that Severance Claim is a Priority Claim

10/24/16

In an 8 page decision dated October 19, 2016, Judge Carey of the Delaware Bankruptcy Court overruled an objection to the reclassification of the claim of a terminated employee.  Judge Carey’s opinion is available here (the “Opinion”).  This employee (“Mangan”) was a fifteen year veteran of the Debtor, and was entitled to 15 weeks of severance pay upon termination.  That is not in dispute.

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