BlindFaith
New Member
I worked in New Jersey for 18 years for a public company incorporated in New York . Hired at will. Terminated on 1/14/2008. I was a corporate officer.
No reason was given for my termination. I requested a letter of termination- employer indicated willingness to supply, and then refused.
I have a severance agreement providing me certain payments and benefits in the event of seperation based on two different termination scenarios.
I also had earned and was to have been paid bonus monies well prior to and right up to my termination. These bonus monies are documented by both prior scheduled payments received as well as by inclusion in SEC filings.
The twist here is that the company filed for bankruptcy protection under CH.11 shortly prior to my termination.
I have two questions:
1) Does my severance agreement survive the bankruptcy (it specifies "corporate reorganization"/ "change in control" as a scenario or normal seperation absent the prior condition, and that the company or its successor in interest shall be obligated to provide me with the stipulated payments and benefits.)?
I have heard from knowledgeable sources that it does and is enforceable, and yet I see in the Crystal Apparel case ( US Banruptcy Court, SD New York), if I read it right, that it may not be enforcable as a "Golden Parachute" or "change in control payments" are not considered severance or a priority administrative expenses.
2) Is the company still obligated to pay me the earned bonuses? Are they considered payroll compensation or some other category that would be still come to me. Unfortunately my severance agreement does not include a specific provision for accrued bonus payments or non stipulated benefits, to be considered.
The company has ceased all communication with me other then rudimentary HR contact for unemployment compensation and COBRA benefits.
Do I fight it out in court or hire a firm specializing in severance plan/employement negotiations to apply leverage so that I can recover anything that may be due me?
No reason was given for my termination. I requested a letter of termination- employer indicated willingness to supply, and then refused.
I have a severance agreement providing me certain payments and benefits in the event of seperation based on two different termination scenarios.
I also had earned and was to have been paid bonus monies well prior to and right up to my termination. These bonus monies are documented by both prior scheduled payments received as well as by inclusion in SEC filings.
The twist here is that the company filed for bankruptcy protection under CH.11 shortly prior to my termination.
I have two questions:
1) Does my severance agreement survive the bankruptcy (it specifies "corporate reorganization"/ "change in control" as a scenario or normal seperation absent the prior condition, and that the company or its successor in interest shall be obligated to provide me with the stipulated payments and benefits.)?
I have heard from knowledgeable sources that it does and is enforceable, and yet I see in the Crystal Apparel case ( US Banruptcy Court, SD New York), if I read it right, that it may not be enforcable as a "Golden Parachute" or "change in control payments" are not considered severance or a priority administrative expenses.
2) Is the company still obligated to pay me the earned bonuses? Are they considered payroll compensation or some other category that would be still come to me. Unfortunately my severance agreement does not include a specific provision for accrued bonus payments or non stipulated benefits, to be considered.
The company has ceased all communication with me other then rudimentary HR contact for unemployment compensation and COBRA benefits.
Do I fight it out in court or hire a firm specializing in severance plan/employement negotiations to apply leverage so that I can recover anything that may be due me?
