Bankruptcy

Oscient Filing for Bankruptcy: What Happens to Laid Off Employees?

By writer

It?s been announced recently that Oscient Pharmaceuticals Corp. has filed for Chapter 11 Bankruptcy. Oscient, (located in Waltham, Massachusetts) was responsible for producing the ?Factive? product, which is an antibiotic used for fighting bronchitis and pneumonia. The company plans to sell its drugs for $5 million, but they still owe unsecured creditors many times that amount, (estimated tens of millions).

While filing bankruptcy may prove an adequate solution for the failing company, what of its many employees that will lose their jobs as result? Lay off?s are expected, but it?s important to point out that not all Oscient employees will lose their jobs right away. The point of Chapter 11 bankruptcy is to re-organize a company and give it a chance to get back on its feet. So technically, Oscient will still be functioning, albeit under strict observation of the bankruptcy court.

As we all know, our economy is approaching a ?2^nd Great Depression? status. It?s a terrible time to suddenly find yourself out of work. Sometimes, to avoid a bankruptcy status a company will lay off employees to cut back expenses, and this has been happening all over the United States. Chances are even YOU have been affected by the recession in some way.

If you have recently been laid off or are suffering other kinds of economic issues, there is a solution to help get you back on track. Contact one of our Legal Helpers attorneys for a free legal evaluation and start getting your life back right now.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on July 22, 2009 (boomark / email).