The U.S. Bankruptcy Court approved Unilife’s motion for approval of its redacted key employee retention plan (KERP).
As previously reported, “The Plan provides for retention payments to the Eligible Employees based upon the Eligible Employees’ continuing to remain with the Debtors through the sale of the Debtors’ assets. The Eligible Employees will be required to use their best efforts to assist the Debtors in their sale process during the course of the cases. The maximum aggregate amount to be paid in retention bonuses under the Plan is $1,334,551, representing less than 1% of the Debtors’ liabilities and less than 2% of the book value of the Debtors’ assets.”
In addition, “The anticipated sale will inure to the benefit of all stakeholders. In turn, the Plan payment will incentivize the Eligible Employees, who are key to the Debtors’ efforts to sell their asset, to remain employed with the Debtors.” Separately the Court also approved Debtor’s motion to file the KERP in redacted form publicly and unredacted version under seal and directing parties to redact confidential information. As previously reported, “Protecting the identity of the Eligible Employees is crucial to the Debtors since its disclosure could be damaging to the Debtors’ business and more specifically, their ability to retain critical personnel during the sale process.”
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