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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 documents. (CLICK 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. CLICK
HERE for full text of objection. Need more info and analysis about the issues? |
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Unsecured
Creditors Committee Objects to "Incentive Pay" Motion
in Diamond Case