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.