Account

Sign in to access your account and subscription

<b><I>AE Liquidation</I></b>: WARN Act Comfort for Debtors Attempting a 363 Sale, or Just the 'Putin Exception'?

In <I>In re AE Liquidation</I>, the Third Circuit held that a WARN Act notice only must be given when mass layoffs are probable, not when merely foreseeable. As a result, a debtor that was attempting to effectuate a going concern sale under Bankruptcy Code Section 363 was not liable for failing to give a WARN Act notice until the day it determined it could no longer wait for approvals from the buyer to close.

13 minute read October 02, 2017 at 12:04 AM
By
Russell C. Silberglied and Katherine M. Devanney
<b><I>AE Liquidation</I></b>: WARN Act Comfort for Debtors Attempting a 363 Sale, or Just the 'Putin Exception'?

In In re AE Liquidation, 2017 WL 3319963 (3d Cir. Aug. 4, 2017) (the Third Circuit Opinion or AE Liquidation), the U.S. Court of Appeals for the Third Circuit held that a WARN Act notice only must be given when mass layoffs are probable, not when merely foreseeable.

This premium content is locked for The Bankruptcy Strategist subscribers only

ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN The Bankruptcy Strategist

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

Already have an account? Sign In Now

For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.

NOT FOR REPRINT

© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Continue Reading

Most firms are aiming their newest tools at the work they already do — pouring their most powerful technology into running the same tasks a little faster. But when everyone automates the same tasks at once, no one pulls ahead. That reaches the future a little faster while leaving a firm’s largest opportunity untouched — and that opportunity isn’t doing more of the existing work, but transforming how the high-value work gets done.

June 01, 2026

Artificial intelligence is rapidly embedding itself into legal workflows, but much of the conversation treats all use cases as if they carry the same level of risk, even if they do not. The more useful question is not whether AI works, but where it can be safely applied and where it cannot.

June 01, 2026

There is a difference between deploying AI in an existing workflow and rethinking how legal work gets done. The organizations seeing more fundamental change are the ones redesigning their operating model around what the technology makes possible.

June 01, 2026