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Charles Gilbert and the Meyer Burger Liquidation Trustee asked the court to resolve WARN Act litigation arising from the May 28, 2025 shutdown of the Goodyear, Arizona facility. The proposed settlement would certify a 283-person class and allow approximately $1.88 million of employee claims as priority claims under Bankruptcy Code section 507(a)(4), representing roughly 88% of asserted priority damages. Meyer Burger denies WARN Act liability, and actual recoveries remain subject to the confirmed plan and available Liquidation Trust assets. Class members who do not opt out would release the debtors, the trust and related parties from WARN-related claims. Class counsel seeks one-third of each distribution after expenses and service payments. The joint settlement motion sets an August 5 objection deadline and an August 12 approval hearing.
Approval would remove contested employment liability without consuming more of a thinly funded estate, while fixing a substantial priority claim pool that competes for liquidation proceeds ahead of general unsecured claims.
Meyer Burger (Holding) Corp. and three U.S. affiliates filed Chapter 11 in Delaware on June 25, 2025 after shutting the Goodyear, Arizona solar-module operation, a site that included a 276,000-square-foot manufacturing plant and a 218,451-square-foot warehouse, and laying off more than 400 employees by May 31. The parent petition listed both assets and liabilities in the $100 million to $500 million range. Management tied the filing to failed financing efforts, production-line defects, the inability to monetize expected Section 45X tax credits, and the insolvency of European affiliates that had supplied critical solar cells to the U.S. business. source filing source filing
The opening capital structure was already heavily stressed: about $89.1 million under a bridge credit agreement, roughly $370 million of intercompany loans, and about $100 million of trade payables excluding intercompany balances. On day one, the debtors sought a $10 million superpriority DIP from lenders represented by GLAS USA LLC, with up to $2.5 million available immediately, and milestones requiring a sale-process order within 23 days and consummation of a section 363 sale within 56 days. They simultaneously asked to market and sell substantially all assets through an expedited bidding process. source filing source filing
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