Severance Contracts A Burden: All American

Law360, New York (May 29, 2007, 12:00 AM EDT) -- All American Semiconductor Inc. on Friday asked the court overseeing its Chapter 11 proceedings to allow it to reject certain agreements it had entered into with former employees.

In a motion filed in the U.S. Bankruptcy Court for the Southern District of Florida, All American said these agreements are detrimental to the company and its estates. The agreements include five salary continuation plan agreements, one deferred compensation plan for an executive and one auto lease for a former All American director, Rick Gordon.

“The debtors have...
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