Dear all,

Last week, the Trustee’s Counsel and the Union stipulated to a court order setting the amount of the Union’s priority and general claims, and on Friday, May 9, the judge signed the order.  We were successful in getting most of what we asked for. We were not successful in getting the unpaid 401(k) amounts treated as priority claims. They were given general unsecured status by the judge. However, we are very happy that we were able to get the unpaid vacation, severance and WARN Act payments treated as priority.  We are also happy that the Trustee accepted our calculation of these amounts. They recognized that the Union’s figures were probably the most reliable accounting available.  The whole process was hampered by the fact that nobody was able to obtain the actual personnel and payroll records from Hull House itself.

The final amounts which the Court is allowing for the claims we filed on behalf of our former members are as follows: 

Total Priority Claims:              $1,512,064.15

General Unsecured Claims:    $   607,032.65

Total Combined Claims:         $2,119,096.80

As I cautioned you before, however, there isn’t enough money in the bankrupt estate to pay all the claims.   The Trustee’s Counsel has informed me that there is enough to pay approximately one-third of the Priority Claims (a total of approximately $500,000). The General Unsecured Claims will not be paid.  Based upon the figures I have compiled, and upon the Trustee’s Counsel’s estimate, I would expect that the amounts being paid to our former members will be between $1,000 and $3,800, depending upon the length of service and the amount of the unpaid vacation for each member.

We are getting closer to the final distribution.  However, there will be a number of procedural steps and filings which will be required before final checks can be issued.  So, a date certain for distribution of the payments cannot be given. The Trustee’s Counsel said it might possibly be sometime in July, but at this point it is too early to say.

When they are ready, the checks should be mailed directly to each former employee at his/her postal address by the Bankruptcy Court.  I have been in touch with the Trustee’s office about how you should send in your current addresses, and am waiting for their reply.

The light at the end of the tunnel is in sight…

In solidarity,

Robert T. (Tim) Yeager