Oct. 7 (Bloomberg) -- Lehman Brothers Holdings Inc., the New York-based investment bank that has fired about 4,000 workers since March, notified some former employees that severance payments were cut off because of the company's bankruptcy.

``Lehman Brothers is unfortunately no longer able to provide the salary continuation or other payments described in your separation agreement,'' the firm told former workers in a letter dated Sept. 30, according to three people with copies of the correspondence. ``As a result you will not receive a payment on Oct. 3 or after,'' the letter said.

http://www.bloomberg.com/apps/news?pid=20601087&sid=arKer97AQU8E&refer=home

Right. All those folks now become creditors.

"All those folks now become creditors."

No they don't. They become parties-in-interest, and maybe might get something after the secured creditors and unsecured creditors are paid. They're at the bottom of the ladder.

Good to hear, except for the "smaller" people who may get hurt.

In yesterday's hearings, Fuld discussed 2 severance fees of (I believe) $11 mil & $16 mil each: these are the severance fees which should be nixed.

Isn't there a way to classify (and thus prioritize) these differently? 16 mil golden parachutes should clearly be voided. 3 months salary for rank and file employees needing to find new jobs should be pretty high on the ladder.