A
year after Toys R Us closed, tens of thousands of laid-off workers are
getting a portion of the severance promised and then rescinded as the
retailer unraveled.
While workers are getting $2 million, a fraction of the $56 million
in fees awarded to Kirkland & Ellis, the law firm representing Toys R
Us, the decision is still a victory of sorts. That's because pensions
and severance payments are labeled as unsecured debt when a company
files Chapter 11, making them low priority and less likely to be paid.
A
bankruptcy judge on Thursday approved the settlement to a class-action
lawsuit filed on behalf of 33,000 former Toys R Us workers, a figure
that means each will receive about $60.
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