Please be advised of the following:
The Debtors initiated their bankruptcy cases with the intent to rapidly negotiate and resolve their various union labor agreements while simultaneously rationalizing their capital structure. In support of these efforts, the Debtors negotiated with their unions and filed a plan of reorganization that proposed a revised capital structure for the Debtors if union agreements could be achieved. However, as a result of strikes initiated or honored by many of the Debtors' unionized employees in early November 2012, the Debtors were forced to shutdown their business operations and thereafter initiated a sale process for the Debtors' assets.
Under bankruptcy law, with certain limited exceptions, creditors with secured claims (i.e., those creditors having mortgages upon the Debtors' real property or security interests in the Debtors' other property) must be paid in full before the Debtors are permitted to make distributions to other creditors (one exception to this rule is for those parties that are presently assisting with the winddown of the Debtors' bankruptcy cases).
At this time, the Debtors have sold the majority of their assets in a series of transactions. Based upon the proceeds received, it has unfortunately become apparent that the Debtors are unlikely to be able to pay their secured creditors in full, and thus are unlikely to have sufficient funds to pay other creditors.
Accordingly, holders of all unsecured claims, whether such claims are administrative claims, priority claims or general unsecured claims, and specifically including former employees with unpaid severance and vacation claims, should not currently expect a distribution from the Debtors' estates on account of any claims they may hold. This is true whether or not proof of claim forms were filed or whether or not the claims have been allowed by bankruptcy court order. The bankruptcy court has been apprised of this situation.