Vermont judge authorizes $8M payout in Koffee Kup hearing
BURLINGTON, Vt. (AP) — A Vermont county judge has approved the payment of nearly $8 million in outstanding claims made by three Koffee Kup Bakery creditors.
Chittenden County Judge Samuel Hoar approved the payment Tuesday and signaled that he was open to expanding the role of Ronald Teplitsky, the receiver of Koffee Kup’s assets, to make recommendations on how other creditors, including the 500 employees who lost their jobs on April 26, will receive money owed to them, the Brattleboro Reformer reported.
Koffee Kup’s primary lender, KeyBank, will receive $7.6 million, the Vermont Economic Development Authority will receive $213,000 and Continental Indemnity will get $84,000.
When former employees will receive their paid-time-off balances has not yet been determined.
Employees received their final paychecks, but they were rescinded by the receiver who said that he was not responsible for paying paid-time-off balances out of the funds he oversees.
Attorneys will return to court on July 6 to describe the expanded role for the receiver and how payments will be paid to creditors.