Glibertarian Freedom Communications

Shafting the carriers.

Among the unsecured creditors are 5,000 newspaper carriers who sued the Orange County Register, claiming the newspaper improperly classified them as independent contractors instead of employees. The Register agreed in a settlement last November to pay up to $22 million to the carriers and placed $28 million in an escrow account to be paid out Sept. 14.

Freedom, however, took back the money after filing for bankruptcy on Sept. 1, claiming that since it didn’t have to be paid out until Sept. 14, it was rightfully part of the company’s assets and should be included in the bankrupcty.