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
(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.