Court Allows Collins & Aikman Severance Packages

Law360, New York (October 18, 2006, 12:00 AM EDT) -- Collins & Aikman Corp. has received permission from a federal judge to offer severance packages to workers the company plans to lay off.

Judge Steven Rhodes of the U.S. Bankruptcy Court in Detroit decided on Friday the company may pay laid-off workers severance packages consisting of four weeks of base salary and accrued and unused vacation, up to a maximum of $650,000 per worker.

Collins & Aikman said earlier in court papers that severance packages were necessary because “failing to provide the severance benefits would only...
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