If laid off while the company is in bankruptcy do we get our severance or is that treated like the company unsecured debt within the proceedings. To ask more precisely, do we physically get our money in the stipulated deadlines or is that questionable?
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I think I read that Windstream requested to keep existing severance plans during bankruptcy, however requested permission to change the existing plan. My guess is that was a nice way of asking if they can eliminate severance where ever they would like.
Chances are there will no be severance offerings during the Chapter 11 unless you are union. Any severance that is offered only has the first $12,850 identified as Priority pay. Any money owed after that is not considered Priority and has to go through a legal approval process. Since severance is considered employee pay, its likely the rest will be paid as well. Good luck!