Court OKs Pre-Holiday Payment for Former Lon Morris Employees
Posted/updated on: December 21, 2012 at 1:52 pm
TYLER – A Tyler federal judge has approved a pre-holiday distribution of $130,000 for more than 100 former employees of Lon Morris College who were unpaid for their final weeks of work when the school filed for bankruptcy protection earlier this year. That’s according to KETK. In a ruling announced Thursday, U.S. Bankruptcy Judge Bill Parker approved the payment requested by estate chief restructuring officer Dawn Ragan.
“We are extremely pleased that the court is allowing this deserving group of former Lon Morris College employees to receive a paycheck before the holidays,” says Ms. Ragan, who negotiated the payment with representatives from the Nashville-based United Methodist Higher Education Foundation. “We are working hard to increase the estate’s value and make sure that every employee receives all the wages they’re owed. This is a positive step in the right direction.” Ms. Ragan says the $130,000 will be distributed to 138 former Lon Morris College employees beginning Friday.
A day before approving the payment for former employees, Judge Parker also approved the remainder of a $500,000 loan requested in early December to help complete the bankruptcy process. A scheduled auction of Lon Morris assets is set for Jan. 14 in Dallas.
