Lehman Brothers Financial SA (LEHNQ)

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Example: Bobby works for one week at company X and earns $1000 prior to payday. However, prior to payday company X files Chapter 11 Bankruptcy and creates a bankruptcy Plan to reallocate Bobby's $1000 to Senior Creditors' until they are satisfied in full. Bobby is still owed $1000 after the bankruptcy plus interest for his late payment. The bankruptcy plan decides to pay 8% simple interest on late paid allowed claims.

Note: If the company had a policy of paying 10% compound interest on late payroll payments, it is void in bankruptcy.