- 11 U.S.C.
In re Plymouth Rubber Co.
Dec
30
2005
Ruling
Court granted the debtors' motion for authority to make payments under the employee retention plan as an administrative claim so that the debtors could make severance payments when they became due.
Procedural posture
The debtors, two companies that were being jointly administered in bankruptcy proceedings, filed a motion to allow one of the debtors to make payments pursuant to an employee retention plan so that the debtors could pay benefits owed to the employees once they are terminated during the wind-down of the debtor's manufacturing operations. The debtors claimed the expense was entitled to administrative expense priority under 11 U.S.C. § 503(b)(1).
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Court
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