Bankruptcy Court’s holding that severance claims are entitled to priority treatment up to the maximum amount provided by Bankruptcy Code 11 U.S.C. § 507(a)(4)
Bankruptcy Code: an employee is entitled to priority treatment of “allowed unsecured claims, but only to the extent of [$13,650] for each individual. . . earned within 180 days before the date of the filing of the petition or the date of the cessation of the debtor’s business . . . for (A) wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual.” 11 U.S.C. § 507(a)(4)
Note: To the extent that any Employee is owed more than $13,650, OXY can seek authority from the Court to pay such amounts by separate motion pursuant to Bankruptcy Code section 502. This introduces several “ifs”.