In re Thomaston Mills, Inc. (01-52544)
Former employees of the Chapter 11 debtor filed proofs of claims for severance pay asserting priority status for their claims. 11 U.S.C.A. ยง 507(a)(3)(A) The debtor's board of directors had terminated the severance plan before the employees were terminated. The Court held that employees who were terminated after the severance plan was terminated were not entitled to severance pay.
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Date:
Thursday, April 14, 2005