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Furious teachers at a recently shuttered Detroit charter school were notified Wednesday that they won't be paid thousands of dollars they earned during the last school year.
"Last Friday, Matchbook Learning became aware that the holders of MTA's outstanding bond debt are refusing to allow use of funds for any summer payroll and instead, are requiring that any available funds be used toward payment of the bond debt," Matchbook's CEO Sajan George told teachers in the email. "We are disappointed and deeply saddened by this development because this means funds will not be there for July or August payroll."
Source Chalkbeat
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Charter School Bond Holders Refuse to Allow Use of Funds for Payroll
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The Official Colorado State Vegetable is now the "state legislator".
(Score: 3, Interesting) by bradley13 on Friday July 28 2017, @05:12PM (9 children)
Business goes bankrupt, some debts cannot be paid, news at 11:00.
If they could pay their debts, they wouldn't be bankrupt.
Everyone is somebody else's weirdo.
(Score: 5, Insightful) by DeathMonkey on Friday July 28 2017, @05:48PM (8 children)
So that raises the question: which debts should be paid first?
I'd argue the people who did the work should get paid first. And investors, who should be aware that investments carry risk, should be paid last.
(Score: 4, Insightful) by Runaway1956 on Friday July 28 2017, @06:01PM (1 child)
Yeah, I think you're right on that one. You always make payroll, first. When I was in business for myself, I ensured that my people were paid, before I even looked to see if I would get a payday. I don't know about legalities, but that is the only ethical position to take.
I know that I can't afford to work for someone for a month or two for free. If I'm not getting paid, I sure don't want to spend on transportation to get to work, for starters. I need to spend THAT money on searching for a job where I get paid!!
(Score: 0, Funny) by Anonymous Coward on Friday July 28 2017, @11:06PM
Interesting! Can you tell about the time you were in business for yourself, Gramps Runaway? And tell us more about things you don't know. Did people actually wear an onion on their belts back then?
(Score: 5, Informative) by Anonymous Coward on Friday July 28 2017, @06:43PM (3 children)
It's stated by law.
Secured debts (like bonds) are always first. This [cornell.edu] is the section of priority for the remaining debts. Employees are ranked lower in terms of unsecured claims, and their recompense is (to my knowledge) the only one that's strictly capped. America is a great place to start a company. Not a great place to work for one.
(Score: 0) by Anonymous Coward on Friday July 28 2017, @07:15PM
Captain Obvious, AWAY!!!
But seriously, you make a very good point.
(Score: 5, Funny) by n1 on Friday July 28 2017, @07:52PM (1 child)
Employees need to remember hard work is it's own reward. Investors don't work, so they obviously need to be paid.
(Score: 3, Insightful) by frojack on Saturday July 29 2017, @12:34AM
Employees are usually paid weekly or monthly.
They could (and should) walk away if this does not happen.
They are about the only people that can walk away (mostly whole) from a failed business.
No, you are mistaken. I've always had this sig.
(Score: 0) by Anonymous Coward on Friday July 28 2017, @08:15PM
So imagine you have an executive with a $5,000,000 salary. Should they get priority over the bondholders?
That also seems wrong to me.
(Score: 1) by caffeinated bacon on Saturday July 29 2017, @02:35AM
So if my business is going bankrupt I can just choose to give all the money to my friends, I mean 'pay' all my 'workers'. Great, who wants to lend me a few million and where can I find a good bankruptcy lawyer?