Star Tribune employees can cash their checks now
Looks like the poor employees at the Star Tribune, which filed for Chapter 11 bankruptcy protection last week, can finally cash their checks -- for now.
MinnPost is reporting that a court this afternoon approved the newspaper's request to pay its employees. Here's more from MinnPost:
Star Tribune employees showed up for work today to find they were unable to cash some recently issued paychecks and use company credit cards to pay for business expenses after the newspaper filed for bankruptcy last night.
The newspapers' attorneys filed petitions in U.S. Bankruptcy Court in New York requesting authorization to pay employees, vendors and the delivery crews that are critical to the continuing publishing and distribution of the newspaper. And late this afternoon, bankruptcy Judge Robert Drain said in an order that the Star Tribune is "authorized but not required" to pay wages, salaries and benefits to its employees as well as severance payments that had been promised before the bankruptcy was filed. The judge gave lenders until Feb. 2 to object to the order.