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

In In re AE Liquidation, 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

Russell C. Silberglied and

Katherine M. Devanney

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.

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

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California’s AI Transparency Stack: From State Obligation to Adoption Strategy

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