In Re Paris Industries Corporation

MEMORANDUM

FREDERICK A. JOHNSON, Chief Judge.

The sole issue addressed here is whether the transfers of claims of employees for vacation pay are “assignments” of the employee claims to Leander Acquisition Corp. or whether Leander is “subrogated” to the rights of the employees. If the transfers are unconditional assignments then the claims are entitled to the same Section 507(a)(3) priority in the hands of Leander as they were in the hands of the employees. If Leander’s rights by virtue of the transfers arise by subrogation then Leander may not be entitled to priority under Section 507(a)(3).…