Under ARRA, an employee that is eligible for COBRA due to an involuntary term gets to pay only 35% of the balance, instead of the normal 102%, which means that they are paying just right at the level they were paying while employed. Now, if the company dissolved its assets, it is possible that COBRA would not be offered, but if anyone bought the company, typically, they hold that liability, so I call BS. COBRA is offered for 18 months if coverage is lost due to losing your position. In addition, if you are laid off, you also automatically qualify for addl Unemployment benefits.
And, she is is CA, right? If so, then she is supposed to be paid all accrued vacation within 24 hours of term. Again, BS.