If you are one of the lucky product manufacturers who weathered the recent economic downturn well and are looking to buy assets from those who did not survive…beware!
USA, Insolvency & Restructuring, Product Regulation & Liability, Frost Brown Todd LLP, Bankruptcy, Due process
The District Court for the Northern District of Ohio recently clarified the applicable requirements for post-petition severance payments to a debtor’s former officers. In the case of In re: Forum Health, et al.1, the debtor sought authorization from the Court to make a severance payment in the amount of $18,126.00 to its former Chief Executive Officer. The Trustee objected, asserting that the debtor’s motion was not based on a program that was generally applicable to all full-time employees as required by 11 U.S.C. § 503(c)(2)(A).
USA, Ohio, Employment & Labor, Insolvency & Restructuring, Litigation, Frost Brown Todd LLP, Bankruptcy, Debtor, Employment contract, Trade union, Severance package, US Code, Chief executive officer, Trustee, US District Court for Northern District of Ohio