Unions Chide Cos. For Abusing Bankruptcies

Law360, New York (May 31, 2008, 12:00 AM EDT) -- Companies have abused the bankruptcy process by forcing workers to bear the brunt of corporate reorganizations, prompting the need for new laws that give workers more rights under Chapter 11, employee advocates told U.S. House of Representatives members on Thursday.

The commercial and administrative law subcommittee of the House Judiciary Committee heard arguments regarding the “Protecting Employees and Retirees in Business Bankruptcies Act of 2007,” which was introduced concurrently in the House and Senate in September.

The bill would increase the value of worker claims in...
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