From: [i--a--d] at [dmtcorp.com] (Ichabod)
Newsgroups: rec.games.frp.misc
Subject: Re: ICE Files Chapter 7
Date: Thu, 26 Oct 2000 20:50:32 GMT

In article <[Pine BSI 4 21 0010261430550 16878 100000] at [escape.com]>, Bart
Lidofsky <[bar t l] at [e-magick.com]> wrote:
> On Thu, 26 Oct 2000, Ichabod wrote:
> > What's too bad is all of the employees and freelancers who are
> > owed significant sums of money, none of which they will ever
> > see.
> 
>         Are you certain about that? In many states, unpaid salary is in
> front of the line for bankruptcy proceedings, before even secured loans.

This is how it works in terms of ICE, from the bankruptcy material
I recieved as one of their creditors: The two main divisions of
debt are secured and unsecured. Secured is stuff where there is
seizable property, like a mortgage or equipment lease. That gets
paid off first. Then comes the priority unsecured debt, which 
includes employee salaries. However, only the 90 days before the
Chapter 11 filining count as priority, and ICE was paying salaries
in the 90 days before the filing. There are lots of subdivisions
of stuff, but that is the basics.

Talking with Pete Fenlon, I was given the impression that only
the major creditors matter any more, such as Tolkien Enterprises
and Aliance Distribution. Their the ones who will be paid off,
at least partially. The employees and freelancers are shit out
of luck.
---
Craig "Ichabod" O'Brien
Burger-flipper of the electronic age
Vote for Ralph Nader