Judge to Rule on A&P Severance Case

WHITE PLAINS, N.Y. — A judge in A&P’s bankruptcy case is scheduled to consider on Monday whether the retailer should pay more than $140,000 in severance benefits to its former chief merchandising officer.

WHITE PLAINS, N.Y. — A judge in A&P [3]’s bankruptcy case is scheduled to consider on Monday whether the retailer should pay more than $140,000 in severance benefits to its former chief merchandising officer.

Rebecca Philbert, who served that role for A&P until June of 2010, said in a court filing that A&P stopped making payments and providing health benefits as required under terms of its severance agreement with her shortly before the company filed for bankruptcy protection in December of 2010. A&P subsequently rejected the agreement as part of its bankruptcy proceedings in June.

Philbert in her argument said she abided by terms of the severance, including non-compete and non-disclosure clauses, which she argued benefited A&P. She is seeking $140,900, or the amount due until the rejection date. A&P in a response said the request failed to meet the requirements of a priority claim. “Administrative priority requires evidence of tangible, concrete benefits to the debtors’ estates — regardless of any performance Philbert may or may not have rendered.”

Also on Monday, the court is scheduled to review several objections to A&P’s motion to assume various store leases. A ruling on the handling of personal injury claims originally scheduled to be heard Monday has been adjourned to Oct. 13, the court said.