The lawyer representing former Fairchild Dornier employees issued a statement on May 14 that reasserts a court petition to force the company’s U.S. subsidiaries into Chapter 7 bankruptcy. The statement came just two weeks after the law firm of Campbell Miller Zimmerman expressed optimism over Fairchild Dornier’s assurances that it would “immediately” address its U.S. subsidiaries’ funding requirements, and that such funding included the severance payments.
However, at press time the company had yet to issue a proposal for disbursing the $970,000 in severance payments to which the employees claim rights, prompting their Leesburg, Va.-based legal representatives to resume the petition process. Filed on behalf of some 500 ex-employees not covered by individual employment contracts, the lawsuit charges that Fairchild Dornier illegally terminated its severance policy. According to the petition, Fairchild Dornier did not notify employees, executive staff or its Herndon, Va.-based human resources representative of the change, which became known only after it fired the employees in early April.