Blue Heron employees’ benefits to be decided


On Monday, it will be decided in bankruptcy court if Blue Heron Paper Co. employees will receive severance and short-term health insurance.

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On Monday, it will be decided in bankruptcy court if Blue Heron Paper Co. employees will receive severance and short-term health insurance.

The Oregon City Mill ends all operations today, after filing for bankruptcy protection 14 months ago.

If the bankruptcy judge allows Wells Fargo, the mill’s principal lender, to continue the company’s current Chapter 11 reorganization status, workers may be able to recoup severance, vacation pay and temporary health insurance under the federally-subsidized Cobra program, according to Greg Hartman, the union’s attorney. But if the judge rules to place the company in Chapter 7 bankruptcy, all severance, insurance and benefits will fold with the company.

“The bank wants Chapter 11 because it would be a more orderly liquidation,” Hartman said. “And they’re the ones who want to get paid first.”

Read more at OregonLive.com.

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