Legal Question in Bankruptcy in New York

Employee Wages and Stock options owned by the debtors.

Dear Sir/ Madam:

I am employee if a company in new york that filed for bankruptcy on June 29th. Before that date the company own me $5,300 in wages Additional $500.00 was collected from me in stock options purchased during my course of employment. The stock options was purchased with the intent that company is going public. Since this did not happened, how can I claim my wages and the $500 collected from me.

Is there any guarantee that the debtors will pay or what are the order (priority) of creditors?

I have already filed a claim with the bankruptcy court clerk.

Please advice.


Asked on 8/15/00, 1:54 pm

1 Answer from Attorneys
David Wright Law Offices of David Wright

Re: Employee Wages and Stock options owned by the debtors.

Wages enjoy priority in bankruptcy. If your case is in the Southern District of New York, you can follow its progress on the Internet. You can download the documents and read what's happening, to get a sense whether there will be any distribution. Go to www.nysb.uscourts.gov for further information. If it's a chapter 11, the company is required to file monthly statements of their operations, P&L type stuff.

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Answered on 9/20/00, 9:25 am


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