Axed First Magnus Workers Told To Wait In Line

Law360, New York (August 30, 2007, 12:00 AM EDT) -- A bankruptcy judge has reportedly denied a motion by First Magnus Financial Corp. to pay the outstanding wages of its 5,940 axed employees, saying the workers would have to take a number and wait their turn just like other creditors of the beleaguered mortgage lender.

In a hearing Wednesday, Arizona Bankruptcy Court Judge James M. Marlar said the workers, who were dismissed just days before the Tucson, Ariz.-based national lender filed for Chapter 11 protection, had no priority claim to the debtor's funds, Dow Jones reported....
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