Liable in contractTrustee in bankruptcy not entitled to disallow claims made by former employees10/31/2001|Canadian Employment Law Today Prior to the bankruptcy of the T. Eaton Company, various attempts were made to restructure and save the company in the 1990s. Included in these attempts was an arrangement between the company and some of its employees to share in a surplus distribution of an employees’ pension fund. The result was a partial wind-up of an existing fund, a sharing of some of the surplus and a transfer of the balance to a new pension fund. Payments made to eligible employees at that time ranged from a few hundred dollars to as much as $100,000.During one of its attempts to restructure and avoid bankruptcy, the T. Eaton Company closed three stores and terminated a group of employees between March 1 and June 30, 1998. To Read the Full Story, Subscribe or Sign In Remember Me Forgot Password If you are a current Subscriber, please click here to set-up or update your login information.