First Guaranty Mortgage Corp. won bankruptcy court approval of its liquidation plan that would pay up to $2.5 million to former employees who claimed they were laid off without the federally mandated 60-days notice.
The payout for the affected workers was one of the last remaining issues for First Guaranty’s Chapter 11 case before the liquidation plan was approved by the US Bankruptcy Court for the District of Delaware.
Judge Craig T. Goldblatt’s approval Monday comes after the mortgage lender, backed by a unit of Pacific Investment Management Co. (PIMCO), sold off its loan portfolios to help pay back creditors. .
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