Originally Posted by
MegatopLover
That's a rather interesting view of the Bankruptcy Code. After administrative expenses (costs of winding-up business and liquidating, trustee fees, bankruptcy advisors like Debtor's counsel) and certain tax priority claims, secured creditors come first, then general unsecureds, and shareholders are last. Employees are general unsecured creditors.
Well, your read of the Bankruptcy Code is interesting, too.
Secured claims may trump administrative claims if the security has to be sold, and there may have to be a "carve out" deal with the secured creditor so that the estate administer the secured property. I also invite you to review 11 USC §507(a) for priorities, including (a)(4), which will show you that employees are not general unsecured creditors, to a certain extent (and would cover most employees for getting stiffed a couple months of pay). It is one of the top priorities, actually.