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Katy Workers Comp Ruling Issued

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The U.S. Bankruptcy Court issued an interim order approving the Missouri Department of Labor & Industrial Relations, Division of Workers’ Compensation’s emergency motion to compel Katy Industries’ affiliated Debtor Continental Commercial Products to comply with the laws of the State of Missouri related to workers’ compensation or, in the alternative, for an order dismissing this case.

As previously reported, “In order for Continental to continue to operate lawfully in Missouri, the Debtor must abide by Missouri law and administer and pay any and all benefits that are deemed compensable to injured employees either based upon a reported injury or the filing of a Claim for Compensation with the Department….All self-insured employers must retain or hire a licensed by the Missouri Department of Insurance, Financial Institutions and Professional Registration or a service company that is certified by the Division.”

In addition, “The Department has been previously informed that Continental and its TPA intend to terminate their relationship. Continental has not provided the Department with a written agreement that purportedly extends the administrator services Continental currently has with its TPA….Wherefore, the Department prays this Court enter an order compelling Continental to do the following as required by Missouri law, or, alternatively dismissing this bankruptcy case for cause pursuant to 11 U.S.C. section 1112.”

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