Archway Cookies trustee granted OK to pay employee settlement in full

By Caroline Salls

Pittsburgh, Dec. 17 – Archway Cookies LLC Chapter 7 trustee Jeoffrey L. Burtch received court approval of an amendment to a Worker Adjustment and Retraining Notification (WARN) Act class action settlement that will allow for full payment of the settlement amount, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The court approved the settlement in February 2012, providing a $4 million fund for payment of the claims, but the agreement was contingent upon the Archway estate “having sufficient funds to satisfy all allowed claims of equal priority.”

Since completing the process of reconciling all priority claims, Burtch said that the company is able to pay all of the allowed claims in full and determined “that it would not benefit the estates to delay the final settlement payment” included in the WARN agreement.

With approval of the amendment, Burtch will be authorized to pay the WARN claimants in full by the end of this year “without prejudicing other creditors,” according to the motion.

Archway, a Battle Creek, Mich., cookie company, filed for bankruptcy on Oct. 6, 2008. The Chapter 7 case number is 08-12323.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.