Gibson Brands' Severance Deals Nixed In Ch. 11 Case
By Vince Sullivan (July 9, 2018, 6:08 PM EDT) -- A request from bankrupt guitar maker Gibson Brands Inc. to assume separation agreements worth $900,000 with 26 employees failed to gain court approval Monday in Delaware when a bankruptcy judge said wages paid under the agreements amounted to prohibited severance payments barred by the bankruptcy code.
During a hearing in Wilmington, U.S. Bankruptcy Judge Christopher S. Sontchi denied the motion from Gibson to assume 26 "garden leave" agreements that paid employees from the company's May 1 petition date until June 15, while not requiring them to do any actual work and instead telling them to focus on finding new employment from...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!