Some 250 former employees of Interep have claims pending with the bankruptcy court for severance payments. Now they are on the verge of receiving payments.
In his motion seeking permission from the US Bankruptcy Court to pay the former employees, Chapter 7 Bankruptcy Trustee Kenneth Silverman notes that Interep had only a non-written severance policy. But rather than fight the validity of the claims, the Trustee is proposing to pay about $2 million in total to the former employees. Ex-Interep employees who immediately found other jobs will receive less than those who were unemployed for a period of time under the motion filed with the court. A hearing on the motion is set for May 11th.
Updating the status of his recoveries, Silverman told the court he has collected $33,272,267 as of April 14 from selling Interep’s assets and collecting accounts receivable. He has disbursed $26,939,253, leaving a balance on hand of $6,333,014.
As reported early this month, Silverman is suing Interep founder and former chairman Ralph Guild and the company’s former directors for more than $20 million, claiming that they “wasted, mismanaged and otherwise squandered Interep’s assets.”