Creditors Committee Objects to "Incentive Pay" Motion
in Diamond Case
The official committee of unsecured creditors in the Diamond Glass
case filed an objection this week to Diamond's motion for an order
authorizing incentive pay to senior management, according to court
HERE for related story.)
In Diamond's original motion, the company requested authorization
of the court to pay 21 executives, vice presidents and regional
managers a total of $565,000. According to the original motion,
the payments would be "contingent upon the Debtors' successful
and timely completion of an asset sale, satisfying certain cash
receipts projections as provided pursuant to the DIP facility, the
amounts distributed to unsecured creditors and confirmation of the
Debtors' Chapter 11 Plan."
However, the committee of unsecured creditors writes that the incentive
motion is "improper and improvident."
"The Committee respectfully submits that the Debtor's implementation
of the [Employee Incentive Plan] in its present form is not an appropriate
exercise of the Debtors' business judgment and is not necessary
or in the best interest of creditors," they write.
HERE for full text of objection.
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