I really don’t know what the procedures regarding this. I know that the court has to have a saying in any transaction and that the workers are treated as creditors in that sense. What are the rules here?
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What I saw in the big bankruptcy I was involved in:
Management at that company was very committed to long-term employees and got them good severance packages as part of the reorganization plan they presented and got approved by the creditor committees and the court. These were people laid off at the end of the reorganization.
Can Windstream's management pull this off? Do they want to? I don't know.
There are no rules. Everything is up to the bankruptcy judge, the banks, and the lawyers fighting over the money now.
If I were you guys, I would not wait to find out if there will be a severance package. Update your resume, send it out to anybody hiring, and get away from WS!
It’s usually budgeted as part of the reorg plan. From my memory of similar situations, the first rounds were much more favorable than the later ones and eventually, maybe after a buyout (can’t remember) nothing, just shown the door.
They said the plan would remain in effect.