As this process moves into the real Company restructuring phase, sadly it gets really tough for the employees as the management of a downsized operating structure leads to the inevitable reduction in headcount. Payroll and benefits are a huge portion of the operating cost, and can be predicted in a precise and simple calculation. Equally easy, is to calculate the immediate savings that can be achieved by by reducing headcount and paying required severance packages.
Unfortunately, this process is a simple and required part of the restructuring goal;
https://www.kccllc.net/chc/document/...13000000000012
13. Accordingly, by this Motion, the Debtors are requesting authority to
continue the Severance Policy, including the payment of the Statutory Severance and Benefit Payments and CBA Severance Payments. As part of the restructuring process, the Debtors expect to pay, in the aggregate, up to approximately $9,000,000 for Statutory Severance and Benefit Payments and CBA Severance Payments to approximately 210 employees, the majority of which are covered under collective bargaining agreements in Australia and Canada, and none of whom are “insiders” as such term is defined in section 101(31) of the Bankruptcy Code.3
The amount of severance an employee receives will ultimately be determined on a case-by-case basis pursuant to the applicable law in the employment jurisdiction, the collective bargaining agreement, if any, and will also depend on the employee’s position with the Company and the nature of the respective employee’s severance payment.
The cash demands for the legal side of the bankruptcy are a huge but essential part of such a complex undertaking - they are all detailed in the Court filings if you are so inclined to review them.
This is the sad and ugly side of this situation. Loyal and hardworking employees losing their livelihoods through an outcome that they had no part in creating or influencing.
https://www.kccllc.net/chc/document/list/4290