Dear all,

This is an update on the Hull House bankruptcy case. There is still nothing final to report just yet.  But here is an update on where we are…

The most recent hearing on the case was on April 10.  We had hoped that the Bankruptcy Judge would have ruled that day on our Motion to include the unpaid 401(k) contributions as a priority claim.  However, at that hearing, the Judge requested further information and argument in support of the Union’s Motion before ruling on the Motion.  The Trustee’s counsel was also given the opportunity to file information and argument in opposition to our Motion.   Both our Motion and the Trustee’s Response are scheduled to be heard at the next regular Motion date, on May 8 at 10:30.  The Union’s Reply In Support of Motion, giving additional legal authority and argument, was filed on April 17, so the Judge will have it in advance of the hearing.  We hope that this will be the last hearing dealing with the Union’s claims, and that we will know on that day whether the unpaid 401(k) contributions will be treated as priority or general claims.

As I have reported before, there isn’t enough money available in the bankrupt estate to pay all the claims.  What we have been fighting for is to get the maximum amount possible for the members, and that means arguing that our members’ claims are entitled to priority status.  I am very happy to report that we have had some success in doing that.  We successfully argued for inclusion of the WARN Act damages and severance pay as priority claims, along with the accrued but unpaid vacation.  It was not a sure-fire thing that we could have won the WARN Act and severance pay issues, but we did prevail, and those amounts will be treated as priority.   Winning the WARN Act and severance issue puts the biggest amount of money into our members’ pockets (57 days’ pay for the WARN Act, and between 2 and 6 weeks of pay for severance, depending on the number of years you worked). What is less clear is whether the unpaid 401(k) amounts will be included as priority.   That involves a smaller amount of money, but we will should know the outcome of that shortly.

For many of our members, the outcome of the 401(k) issue will not affect the amount of money they will get.  For others, however, if we can prevail on the issue, it could mean another $100 or $200 for them.  We are fighting to get every dollar we can for you.

I have confirmed again with the Trustee’s counsel that our members will be likely to get about 1/3 of the amounts we have filed priority claims for.  Our priority claims, with or without the 401(k) amounts, total approximately $1,500,000.  Therefore the total dollar amount for paying our members’ claims is approximately $500,000.  Each member will get approximately 1/3 of the amount we have claimed for you.   At this point, I would estimate that largest payouts will be somewhere between $3,000 and $4,000.  That would be for the employees who had the greatest amount of accrued vacation and severance.  Others who had used some of their vacation, and who worked at Hull House for a shorter period of time, will get less than that.

When can you expect your payments? I don’t know yet.  It is likely that we are still months away from a final settlement of the case.  Our issue will probably be resolved on May 8, but there will likely be hearings after that dealing with other administrative aspects of the case.   I will send out another email, and post it on the website, as soon as I know anything definite about that.

In solidarity,

Robert T. (Tim) Yeager

Regional Organizer

NOLSW/UAW Local 2320

542 S. Dearborn Street, Suite 490

Chicago, IL 60605-3503

312-461-0543