Advertisement

Ormet Emergency Payment Motion Approved

Advertisement

The U.S. Bankruptcy Court approved Ormet’s emergency motion for entry of an order, pursuant to 11 U.S.C. Sections 105(a), 363(b), and 503(c), authorizing the Debtors to pay obligations under its existing salaried employee layoff plan, nunc pro tunc to September 9, 2013, in an amount of up to $75,000 on a monthly basis and $250,000 in total, on an aggregate basis. As previously reported, “The Layoff Plan has been in place for over eight years and is designed to fairly compensate Salaried Employees for their service to the company and to provide supplemental benefits for up to one year as a safeguard until the company is able to recall them….Accordingly, the Debtors have conducted a round of layoffs of Hourly Employees and are now in a position to layoff certain of their Salaried Employees. As the Debtors continue operations with ever-present uncertainty regarding the long-term ability of the Debtors to maintain operations as a going concern, the remaining Employees, rightfully, are concerned about the future of the Debtors. In order to maximize value, until the Sale is consummated with the Buyer, or the Debtors were forced to further reduce operations, the Debtors need their workforce to be focused on their current jobs and limited in their distractions. By authorizing the Debtors to honor their obligations, the remaining Salaried Employees will have greater comfort, easing some of the anxiety that will inevitably distract from their job performance. The relief requested herein is critical for the Debtors as they need the remaining Employees to maintain their focus and continue to perform as they always have.”

More on Ormet Corporation (2013)

Leave a Reply

Your email address will not be published.

3 + 2 =