WARN Class Wants 'Pink Slime' Bankruptcy Turned Into Ch. 7

Law360, Wilmington (October 5, 2012, 7:25 PM EDT) -- A putative class of ex-employees suing bankrupt "pink slime" maker AFA Foods Inc. asked a Delaware bankruptcy judge Friday to immediately convert the company's case to Chapter 7, saying otherwise the meat processor's proposed global settlement would leave nothing left for them to recover.

AFA proposed the agreement to resolve lingering disputes between creditors over the proceeds from the company’s liquidation, but the class argues that the settlement is far from global in the benefits it provides, as it would pay out AFA's remaining cash only...
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