Related Practices

DELAWARE BANKRUPTCY MEMO

July 18, 2011

DELAWARE BANKRUPTCY COURT HOLDS INDIRECT OWNER AND LENDER LIABLE FOR DEBTOR’S WARN ACT VIOLATIONS  (370 KB)

On July 8, 2011, the United States Bankruptcy Court for the District of Delaware, per the Honorable Mary F. Walrath, issued an opinion applying the Worker Adjustment and Retraining Notification Act (the “WARN Act”), which may have important ramifications to owners of and lenders to distressed businesses that may be considering plant closings or mass layoffs of employees.  The case provides guidance for investors and lenders regarding the degree to which they should involve themselves in the employment decisions of their portfolio companies.
 
Click here to download a summary, analysis and copy of the Court’s Opinion and related documents. 


T: (302) 658-9200    1201 North Market Street, 16th Floor, P.O. Box 1347, Wilmington, DE 19899-1347