The U.S. Bankruptcy Court approved Nuo Therapeutics’ redacted motion for entry of an order authorizing and approving (i) a revised key employee incentive plan (KEIP), (ii) a revised key employee retention plan (KERP) and (iii) filing of certain information related thereto under seal.
As previously reported, “In substance, the Revised Bonus Programs mirror the Initial Bonus Programs. However, the Initial Bonus Programs contemplated the Debtor’s liquidation through an auction and-sale process, rather than the Debtor’s reorganization through a chapter 11 plan. As discussed, although the sale process was abandoned, the Debtor’s need to incentivize and/or retain its employees has never changed.”
Court-filed documents note, “Throughout the course of this chapter 11 case, the Debtor had an urgent need to (i) sufficiently incentivize certain of the Debtor’s key employees to take extraordinary steps, above and beyond their typical duties and responsibilities, in order to maximize the value of the Debtor’s estate and (ii) retain certain other employees in order to ensure the Debtor’s continued operation and maintain the Debtor’s relationships with its vendors, customers, and other stakeholders. In short, the Debtor’s ability to conduct a successful Capital Raise, confirm the Plan, and emerge from chapter 11 on a timely basis is dependent on the efforts of each of its employees. Finally, funding in the aggregate amount of $229,167 for the Revised KEIP and KERP is to be provided by the Debtor’s postpetition lenders, and thus, was incorporated into the approved DIP budget.”
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