Former King Mill employees hoping to find out Saturday whether their health insurance benefits and wages will be paid for 60 days as required by federal law will have to wait longer.
The interim trustee appointed to decide the issue said he was not prepared to make a decision Saturday even though he was aware of the ''hardship and suffering'' of the employees.
''I simply need more time to make a decision that is intelligent,'' Steve Wallace said.
U.S. District Bankruptcy Court Judge John S. Dalis granted his request but told him to get moving.
When the mill abruptly closed May 4, 306 King Mill employees lost their jobs, retirement funds and health insurance benefits.
Mr. Wallace must decide whether the employee benefits should come before the claims of General Electric Capital Corp., the creditor to King Mill's parent company, Spartan International.
Former King Mill employee John Brown, 53, said the employees present at Saturday's hearing were a little disappointed. The employees are being represented by John B. ''Jack'' Long of Tucker, Everitt, Long, Brewton & Lanier.
''We were expecting something different to take place here today, but it didn't. So we trust Mr. Long. He has confidence in the judge handling this matter properly, so we're just following along with his lead,'' said Mr. Brown, a 29-year employee of King Mill.
Former employee Gloria Renew, 55, said she didn't know what to think about Saturday's turn of events.
''Jack seems positive, so I guess we've got to be too,'' she said with a sigh.
Spartan owed GE $65 million on a revolving line of credit. GE seized Spartan's assets May 4 when Spartan elected not to file for Chapter 11 bankruptcy, according to testimony Wednesday before Judge Dalis.
Mr. Wallace also said he wants the matter of a temporary restraining order, which directed employees not to take any further action until 5 p.m. Monday and was issued by U.S. District Judge Margaret B. Seymour in Spartanburg on Thursday, resolved before proceeding.
Michael M. Beal, the lawyer for Peter Tourtellot, the receiver appointed May 22 to oversee the sale of Spartan's assets, presented Judge Dalis with the restraining order during Thursday's hearing. Judge Dalis determined the order did not apply and ordered the appointment of an interim trustee to hear the employees case Saturday.
But Mr. Wallace said he doesn't know whether the order applies to him.
''I see where the petitioner is trying to make me a party to this restraining order,'' he said. ''It's going to be difficult for me to proceed until this matter is taken care of one way or another. I simply need more time.''
A hearing is set for before Judge Seymour at 11 a.m. Monday in U.S. District Court in Spartanburg.
Judge Dalis said he expects to hear from Mr. Wallace after that hearing about when he will be ready to proceed.
Judge Dalis has been openly critical of the way GE and Mr. Tourtellot have proceeded since Mr. Tourtellot's appointment, citing the lack of notice of creditor meetings and the sale of King Mill to Standard Textile for $4.1 million.
On Saturday, the judge noted that ''no affected party but the receiver was party to'' or notified of the temporary restraining order before it was issued. Judge Dalis also noted that none of the customary safeguards have been present in GE's and Mr. Tourtellot's dealings.
Reach Sylvia Cooper at (706) 823-3228 or sylviaco@augustachronicle.com.
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