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September 7, 2006

There's little hope Paramount employees will get paid

Monday a Superior Court judge could decide what chance more than 180 former Paramount Cards workers have to collect unpaid commissions, bonuses, vacation and sick pay.

It doesn't look good the U.S. workers of the failed company will ever see the $844,000 owed to them.

Paramount's court-appointed receiver, Allan M. Shine, said there will be no money for employees if the company's lender, Citizens Bank, succeeds in pressing its own claim for more than $42 million.

On Monday, a Superior Court judge will consider a request by Citizens Bank to require that all proceeds from the sale of the Pawtucket-based card maker's assets be used to repay its bank debts.

The sale of Paramount's assets is expected to fall far short of its $42 million bank debts, which means that anyone who files claims against Paramount_ including former employees _ will likely get nothing, according to Shine.

--- Lynn Arditi, Journal staff writer

Posted by Peter Phipps  at 9:10 AM | Permalink

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