I think we can all agree that Twitter is headed for bankruptcy. Now, I know next to nothing about the bankruptcy process, and my online research has only served to increase my confusion. Can someone please clarify to me what this would mean in terms of severance? Would this have any effect on it?
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Look up the severance summary plan description.
Note that severance is not counted as wages. In a bankruptcy situation, severance can (and often has) gone to $0.
I read an article that said Leon was refusing to reimburse employees for travel expenses incurred before the buyout. Can anyone here confirm or deny that?
Can someone please clarify to me what this would mean in terms of severance?
TLDR: You're screwed.
Details: It depends on what sort of bankruptcy is being structured (Chapter 11 vs Chapter 7), and I'm assuming that Severance is treated the same as back wages owed to FTE's. The basic rule is that paying your employees the salary they are owed (back wages) is the first priority in a bankruptcy, that is first AFTER the bank creditors are paid off. Since the banks (aka "Secured Creditors) are owed $13B, that means you (Employee, ex-Employee, etc) are screwed. Source: https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/wagesandbankruptcy.aspx
Note the following salient info:
Each individual employee of a bankrupt employer is given a priority of $15,150 (as of April 2022, adjusted to inflation every 36 months) of all wages, salaries or commissions the employee earned up to 180 days prior to the organization filing for bankruptcy. In some cases, there will be sufficient assets to satisfy employee claims in full; in others, employees may be compensated for only a portion of their claims or receive nothing at all.
Meaning that even if you weren't behind the banks in line, you're still screwed. You can take heart in the fact that you are not as screwed as the vendors who are owed money. Those are already getting screwed over right now, as Elon & Co are refusing to pay debts incurred before the buyout. Yes, when you buy a company, you buy the debts too, which is why you always perform due diligence before making a ma------a-meme bid of $54.20/share on a $42 stock.... oh, nevermind! Bottom, line, you're screwed.
“we” lmao
No where near bankruptcy!