RSS Feed
Postville, IA - Massive State Fine Against Agriprocessors Slashed |
|
| |
Text Size
|
The fine announced on Oct. 29, 2008, was the largest that Iowa Workforce Development had ever levied. It covered findings that Agriprocessors unlawfully deducted $192,597 from workers paychecks for frocks they wore on the job, and failed to pay the final paychecks of 42 workers arrested in an immigration raid.
In a proposed settlement with Agriprocessors bankruptcy trustee, state Labor Commissioner Dave Neil agrees to reduce to a $9.98 million claim for illegal paycheck deductions and a $4,900 claim for the unpaid wages to $1 million.
The settlement agreement was submitted Friday to Chief U.S. Bankruptcy Judge Paul Kilburg for his approval.
Under the settlement, the $1 million would become a priority claim in Agriprocessors’ bankruptcy case, one of the claims that will be paid first if funds become available. There appears to be no guarantee, however, that even $1 million can be paid.
This week’s bankruptcy court approval for the sale of most Agriprocessors assets $8.5 million to SHF Industries is expected to leave nothing for unsecured creditors, and possibly some partial payments to secured creditors.
Although most of the valuable assets of the company have been sold, an attorney for trustee Joe Saracheck told the bankruptcy court recently that they still have hopes of recovering “preference” payments.
Preference payments are payments made in the three months immediately preceding a bankruptcy that could be deemed preferential to certain creditors. In the case of individuals or firms closely connected to the company, payments going back even further may be subject to forfeiture for the benefit of other creditors.
More of today's headlines
“Jerusalem - After a relatively calm week in the capital, ultra-Orthodox protests have resumed in Jerusalem Saturday afternoon. Some 500 ultra-Orthodox Jews clashed with...”
Jerusalem - Charedim Clash with Police as Protests Resume
New Jersey - Higher Bail Set For Orthodox Jews In NJ Probe, Citing Flight Risk To Israel
Total8
Read Comments (8) — Post Yours »
1
Jul 25, 2009 at 09:20 PM Anonymous Says:
ho hum. this was all predicted as the 'case' went on.
2
Jul 25, 2009 at 09:33 PM Anonymous Says:
Why shoul it be a priority claim above the poor hardware supplier who is gonna be forced out of business himself if he can't collect the fifty to hundred thousand that agri owes him?
3
Jul 25, 2009 at 11:46 PM posheter yid Says:
another beilis trial r"l
4
Jul 26, 2009 at 08:12 AM Menachem Says:
Convenient, just when Rubashkin loses ownership.
Although I am not a lawyer, I cannot understand how you can charge 9.98 Million dollars, for the deduction of less than $200,000.
And why in the world should these guys get priority over the banks and other Agri creditors.
5
Jul 26, 2009 at 10:56 AM b'dieved kind of guy Says:
Is Rubashkin guilty of this? Was there a trial? Was this a plea bargin?
If, in fact, Rubashkin illegally took the money from the workers, then from a halachic point of view, dina dmalchusa of bankruptcy does not apply. He would personally be responsible for the wages and the deductions.
6
Jul 26, 2009 at 11:37 AM Anonymous Says:
“ ho hum. this was all predicted as the 'case' went on. ”
Is this good news or bad news?
Rubashkiin will never pay this (good) but that means tha Rubashkin cheated his workers (bad)
7
Jul 26, 2009 at 07:30 PM Anonymous Says:
“ another beilis trial r"l ”
Big difference. Take your head out of the borsht and see who was scamming whom.
8
Jul 26, 2009 at 11:30 PM me Says:
“ Is Rubashkin guilty of this? Was there a trial? Was this a plea bargin?
If, in fact, Rubashkin illegally took the money from the workers, then from a halachic point of view, dina dmalchusa of bankruptcy does not apply. He would personally be responsible for the wages and the deductions.
”
Right, except for the fact that Bankruptcy is part of dina dimalchusa and allows the erasure of debt. You can't use the half of dina dimalchusa that you like and ignore the half that you don't.