Indeed. E.g. they immediately had to file a petition "to pay claims of employees": http://chapter11cases.com/2014/06/24/source-home-entertainment-llc-2014-bank

Indeed. E.g. they immediately had to file a petition "to pay claims of employees": http://chapter11cases.com/2014/06/24/source-home-entertainment-llc-2014-bankruptcy-new-filing-alert-motion-for-authority-to-pay-claims-of-employees/ http://chapter11cases.com/2014/06/24/source-home-entertainme... I've read elsewhere over 5,000 were laid off, and they have less than 200 left. This would be to pay what's due to the former, and/or continue to pay the latter, so the company doesn't just shut down now, a worst case for everyone.