The owner of a large company that provides plant service for businesses across the United States says he will appeal a federal court decision that says he can’t claim federal unemployment compensation benefits because his business went into bankruptcy.
The U.S. Court of Appeals for the District of Columbia Circuit on Tuesday rejected a federal judge’s ruling that said a plant service company must file bankruptcy if its business is forced to shut down due to a business collapse.
The ruling, issued by Judge Robert M. Wilkins of the D.C. Circuit, said the federal government has authority to declare a business insolvent if the business is unable to pay its debts.
Wilkins, appointed by President Donald Trump in December, said his decision applies only to plants owned by a corporation or an association.
He did not comment on whether he would appeal the ruling.
In a statement, the company said it will appeal Wilkins’ decision to the full court, which is scheduled to hear arguments in October.
Wilkin said he ruled in favor of a bankruptcy filing by the U.K.-based service provider, BRinker, because it had no assets and did not have any liabilities.
BRinker has more than 7,500 employees and has been running a plant-service business since 1984.
Wilkes said BRinker’s owners had to sell some of its plants because they ran out of cash, and that the company had been struggling with the cost of operating its plant-services business, which has about 5,000 employees.BRinker’s bankruptcy filing comes a week after the company’s owner, U.A.I. Holdings, filed for Chapter 11 bankruptcy protection in the U