Standard Register approved to terminate employee severance, benefits

By Kali Hays

New York, July 13 – Standard Register Co. obtained authorization to cancel the severance plans and other benefits of its employees under a July 13 order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, benefits included in the motion are Standard Register’s employee savings plan, various health and welfare plans and any executive compensation plans. However, the Stanreco retirement plan was intentionally excluded from the motion.

The termination of the plans is intended to coincide with the wind-down of the company resulting from the approved sale of substantially all of its assets to Taylor Corp. for $306.7 million.

Though company employees are entitled to severance pay in the event of a corporate reorganization or sale of the company, Standard Register claims that eligible employees “do not have any vested right to severance pay,” and that the company retains the authority “to amend or terminate the severance plan at any time, retroactively or otherwise,” the motion said.

Under the purchase agreement, Taylor assumed some liabilities related to employee benefits, but all plans included in the termination motion are still the property of Standard Register.

Standard Register is a Dayton, Ohio-based provider of business documents and related services for the health care, financial services, commercial and industrial markets. The company filed for bankruptcy on March 12 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 15-10541.

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