Bonus Planned Approved during Borders' Bankruptcy Trial
A breakthrough in the Borders Group Inc. Chapter 11 bankruptcy trial came this week when an amended executive bonus plan was approved.
On April 14 Borders had proposed the bonus payments, but they were not approved until this week by U.S. Bankruptcy Judge Martin Glenn. It was the judge that had asked for the changes after he heard objections from a U.S. Trustee on behalf of the Justice Department.
Justice Glenn wrote in the order that the plan is "in the best interests of the debtors, their estates, and creditors." The new plan showed that employment agreements for four executives were taken away and will not be assumed at all. However, ten people in the bonus plan will be paid bonuses ranging from 40 to 125 percent of their base salary, but only if Borders should reach certain benchmarks.
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