Centrix Approved To Pay Employees

Law360, New York (September 22, 2006, 12:00 AM EDT) -- The federal judge overseeing Centrix Financial LLC’s bankruptcy proceedings has signed off on an order granting the debtors permission to pay off pre-petition debts to employees and continue providing employee benefits.

U.S. Bankruptcy Judge Gregory Zive held on Thursday that granting the debtor’s motion served the interests of both the debtors and their creditors, and directed banks to honor checks written to satisfy pre-petition employee obligations.

Judge Zive's order directs the banks to rely on the debtors’ representation as to which checks were directed toward the...
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