Polaroid's passage through Chapter 11 exposes how bankruptcy can give debtors too much power.
Kris Frieswick, CFO Magazine
January 1, 2003
Your article was written in 2003 and LGPhilips Bankruptcy in 2006 favored secured crditors,banks, LG and Philips (parent companies)of the so called bankrupt company. They failed to pay owed severance they had contracted to pay to one employee after 31 years of service(2 wks for every yr of service),he worked until Dec 31st,2005 and they filed Jan.2006...They paid workers in Mx. 3 mo severance which is more than they did in the US. As more companies in the US try to go bankrupt, after contracting to pay severance, I suspect we will see this become a more widespread problem. Some say the above partnership was suspect from the beginning.
Posted by Donna Skelly | March 16, 2007 08:11 pm
Wow, read this dated article with much interest. As an employee that lost a lot during these times, I agree totally that something was not right in the way these proceedings went on. It was a classic, "The rich got richer" scenario, for sure! DiCamillo, the ex-CEO should be in jail in the opinion of many employees, both current and ex. So, we go on... barely; with people seemingly leaving every week and plants closing on a routine basis. Even the plant I am in is on a schedule to close in the next year or two, unless something happens that keeps us going. After all this, 'm okay with it - Had enough of the Polaroid charades. It was certainly a fine company at one time - Just ask any long-time employee...
Posted by S Cullity | October 10, 2006 09:40 pm© CFO Publishing Corporation 2009. All rights reserved.