Former Pemco's plan confirmation draws objection from WARN claimants

By Jim Witters

Wilmington, Del., Dec. 14 - WAS Services, Inc., formerly Pemco World Air Services, Inc., is facing an objection to confirmation of its Chapter 11 liquidation plan from former employees under the federal Worker Adjustment and Retraining Notification Act, according to documents filed Dec. 14 with the U.S. Bankruptcy Court for the District of Delaware.

Ethan Willock, the named claimant in the documents, says that more than half the workforce at Pemco's Tampa, Fla., facility were laid off the same day a revised asset purchase agreement was filed between Pemco and Avion Services Holdings, LLC.

"The debtors presumably through that termination was in the ordinary course of their business, because no notice was given of the layoffs," Willock claims.

The claimants assert that the Chapter 11 plan of liquidation cannot be confirmed because it "does not provide for the payment of WARN claims," which likely will be more than $1 million.

The objection states that Pemco laid off 494 workers of the 877 at the Tampa facility.

The former employees have filed a WARN complaint seeking $5 million in damages.

The WAS Services plan confirmation hearing is scheduled for 3 p.m. ET on Dec. 19.

Tampa, Fla.-based Pemco performs large jet maintenance and repair services. It filed for bankruptcy on March 6, 2012 under Chapter 11 case number 12-10799.

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