Stratitude (a wholly-owned subsidiary of Quadrant 4 Systems) filed with the U.S. Bankruptcy Court a motion for entry of order an order authorizing termination of the Debtor’s 401(k) plan and for limited and shortened notice thereof.
The motion explains, “Prior to the Petition Date, the Debtor implemented the 401(k) Plan, effective August 1, 2017. The 401(k) Plan is sponsored by the Debtor. Automatic Data Processing (‘ADP’) manages the 401(k) Plan, including any required recordkeeping services. ADP’s management fees are paid out of the funds in the 401(k) Plan….The Debtor’s only remaining active employee is its CEO, Robert Steele, who is not, and has never been, a Plan Participant. Therefore, as of the filing of this Motion, the Debtor does not have any active employees participating in the 401(k) Plan.”
In addition, “Through the Chapter 11 Case, the Debtor’s business affairs are winding down and all Plan Participants have been terminated. The Plan Administrators are Robert Steele and Aparna Radeekesh. Ms. Radeekesh is not an employee of the Debtor and therefore not a Plan Participant. Mr. Steele is also not a Plan Participant, and it is anticipated that he will leave the Debtor following confirmation of a plan of liquidation. Finally, termination of the 401(k) Plan will eliminate ongoing monthly management fees to ADP, which will continue to be charged against Plan Participant account balances until all funds have been removed from the plan.”
The Court scheduled a March 20, 2018 hearing on the motion.
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