Chapter 11 means restructuring and restructuring means layoffs. Major layoffs. But what does this mean for severances? Do people who are laid off still get the usual severance package or is it significantly reduced due to being a part of Sungard's Chapter 11 reorganization?
I know liquidation usually means no severance at all, but I'm not that clear on bankruptcy.
Don't trust 'per the manual'
In June, ask HR about severance and document what you can - all bets are off.
still says 1 week per year as per the manual
2017 and prior was 2 weeks for every year of service.
2018 it was reduced to 1 week/yr
2019 it was reduced to 1 week (period).
After Ch. 11? Likely nothing for severance.
After the re-structure, the hedge fund will likely liquidate. This means no severance packages will be given. There is no company vision, no hope and no future. Anyone who remains should be actively planning their next career move.
I agree with the previous post if you look at the previous company Stern was CEO of they filed for bankruptcy and then there was a fire sale.
You lot don’t see it he’s done the exact same thing before with USInternetworking in 2002 and sold to AT&T.
Do you really think when SGAS spun off from the parent this was not part of the plan how can anyone operate with a $1 billion debt and paying $100 million INTEREST payments a year later
The new hedge fund owners knew they would never be able to collect on their bad investments with the current business plan and LT. They also knew AS was headed to Chapter 7 if they did nothing. This Ch 11 reorg and taking ownership was the ONLY way for the hedge fund (Vulture Capitalists is probably the best name) people to have any hopes of getting their money back and turning a profit.
I am absolutely shocked at the number of people who now believe Stern and Lynch have saved AS from impending doom (Ch. 7) and will almost overnight put the company back on the track to be a market success. Folks, Stern and his LT cronies (incl. some VPs) are the same people who over the last 9 years destroyed the company now all of a sudden they're the company saviors?, I don't think so. Think about it, NOTHING else has changed aside from a new board. There is still no product, no vision, terrible off-shore support, customers running out the door......NOTHING has changed that would turn the company around, NOTHING!
Vulture Capitalists do not take over a company with a plan to grow the business into a strong market play for years to come. Do your research. I'm beginning to really feel sorry for my colleagues who think that the jobs, product, support, and customers will come flooding back. Vulture Capitalists have one goal in mind, and Stern admitted to this during all of his giggling, their one and ONLY goal is to QUICKLY break up or sell for the highest profit possible while recouping the money they thought was lost for good. Losing $900 in debt on paper was only a marketing ploy (albeit a very large one), to make the company more attractive for sale. Stern's goal from the current board since 2016 was to sell the company. He was never going to accomplish that with $1.25b in debt. There will significantly more cost cutting and more heads will be gone including heads in the off-shore teams (that started to happen this month). The VC hedge fund owners will put lipstick on this pig called Sungard AS and sell as quickly as possible to the highest bidder. Wake up people!
If the current owners thought we were going to get better why did they Bail a year or two before the loans were even due they saw no Growth they saw it was going to fail they bailed. Simply as that
Most of you thought I was full of it with chapter 11. No listen to me NO Severance....none no way no how . If you don't believe me you will by May /Just. Buckle up.
KKR
Bain
https://www.thenation.com/article/its-time-to-crack-down-on-the-toys-r-us-vulture-capitalists/
Severance packages haven’t been good since 2017. Severance was reduced to 1 week for every full year in 2018. Who knows what it is now, but don’t hang around counting on a good severance package or at least start looking now.
Have a read of this:
https://www.investopedia.com/terms/c/chapter11.asp
So whilst in chapter 11 businesses continue to run normally and staff still get paid as normal servernves can be wiped away as it’s normal for mass layoffs with chapter 11.
In essence anyone being flung out the door now won’t walk away with a decent packet be lucky if they get anything.