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Appeals court rejects Neenah Foundry’s new employer claim

For years, the Neenah Foundry Co., Neenah, Wis., has been known for its tree grates (above), manhole covers and sewer covers. (File photo)

The Neenah Foundry Co. had been known for its tree grates (above), manhole covers and sewer covers. An appeals court ruled Thursday that the company’s reorganization following bankruptcy doesn’t mean it should be considered a new employer in terms of the state’s unemployment system. (File photo)

MADISON, Wis. (AP) — A state appeals court has ruled Neenah Foundry’s reorganization following bankruptcy doesn’t mean the company should be considered a new employer in terms of the state’s unemployment system.

The appeals court decision Thursday means that over a seven-year period Neenah Foundry will pay about $393,000 to $565,000 more into the unemployment insurance system than it would have paid as a new employer.

After a large number of layoffs in 2009, Neenah Foundry filed for bankruptcy, which was approved by a federal court in 2010.

WLUK-TV reports the company argued that it should be considered a new employer, but the state rejected the request. The appeals court noted that the company’s ownership, management and operations remained largely the same before and after the bankruptcy.

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