Case No. 05-41108-399, Jointly Administered Under, Motion No. 11.United States Bankruptcy Court, E.D. Missouri, Eastern Division.
February 3, 2005
ORDER GRANTING EMERGENCY MOTION FOR AN ORDER (I) AUTHORIZING THE DEBTORS TO PAY PREPETITION WAGES, SALARIES, AND EMPLOYEE BENEFITS; (II) AUTHORIZING THE DEBTORS TO CONTINUE THE MAINTENANCE OF EMPLOYEE BENEFIT PROGRAMS IN THE ORDINARY COURSE; AND (III) DIRECTING ALL BANKS TO HONOR PREPETITION CHECKS FOR PAYMENT OF PREPETITION EMPLOYEE OBLIGATIONS PURSUANT TO 11 U.S.C. §§ 105(a), 507(a)(3), and 507(a)(4)
BARRY SCHERMER, Bankruptcy Judge
Upon review and consideration of the “Emergency Motion For An Order (I) Authorizing The Debtors To Pay Prepetition Wages, Salaries, And Employee Benefits; (II) Authorizing The Debtors To Continue The Maintenance Of Employee Benefit Programs In The Ordinary Course; And (III) Directing All Banks To Honor Prepetition Checks For Payment Of Prepetition Employee Obligations Pursuant To 11 U.S.C. §§ 105(a), 507(a)(3), and 507(a)(4)” (the “Motion”), filed by Falcon Products, Inc., Epic Furniture Group, Inc., The Falcon Companies International, Inc., Falcon Holdings, Inc., Howe Furniture Corporation, Johnson Industries, Inc., Madison Furniture Industries, Inc., Sellers
Josephson, Inc., and Shelby Williams Industries, Inc., debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors”), the accompanying “Affidavit of Neal R. Restivo in Support of Chapter 11 Petitions and First Day Motions,” all other pleadings and evidence submitted in connection with the Motion, and the arguments of counsel, the Court hereby finds that:
(i) notice was appropriate under the circumstances; and
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(ii) good cause therefore exists to grant the relief requested in the Motion. Therefore, it is ORDERED THAT:
1. The Motion is granted as set forth below and as reflected in the record of the hearing.
2. The Debtors are hereby aut horized: (a) to pay all outstanding accrued and unpaid obligations to the Debtors’ employees and independent contractors, including those provided by temporary agencies, who are currently under formal or informal contract (collectively, the “Employees”), for wages and salaries (collectively, “Wages and Salaries”), including amounts that the Debtors owe as incentive payments to contract sales representative and amounts that are required by law to withhold from employee payroll checks in respect of federal, state, and local income taxes, social security and Medicare taxes; (b) to honor any prepetition payroll checks; and (c) to issue new checks to replace any dishonored checks for Wages and Salaries, if necessary.
3. The Debtors are hereby authorized to continue to honor certain of the employee benefit plans and programs provided to their Employees (collectively, the “Prepetition Employee Obligations”), as described in the Motion.
4. All relevant banks where the Debtors’ bank accounts are maintained, are directed to honor the Debtors’ prepetition checks for payment of the Prepetition Employee Obligations and prohibited from placing any holds on, or attempting to reverse, any automatic transfers to Employees’ accounts for Prepetition Employee Obligations.
5. This Order is entered without prejudice to the right of the parties in interest to take further action with regard to amounts exceeding $4,925.00 paid to Employees on account of obligations accrued and unpaid as of the Debtors’ filing of their chapter 11 petitions. It is the intent of this Order that Employees shall not be compensated in excess of the statutory priority in the amount of $4,925.00 and that no payment in excess of the statutory priority shall be made to insiders or highly compensated individuals that are employed by the Debtors.
6. The Debtors are authorized and empowered to take such actions as may be necessary and appropriate to implement the terms of this Order.
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7. No later than three (3) business days after the date of this order, the Debtors are directed to serve a copy of the order in accordance with the Court’s order establishing notice procedures and are directed to file a certificate of service no later than two (2) business days after service.