China Fishery Group’s Chapter 11 trustee filed with the U.S. Bankruptcy Court a notice of withdrawal of the previously-filed motion for approval of the Peruvian Opcos’ key employee incentive plan (KEIP) for certain senior management employees. The Chapter 11 trustee also filed with the Court a motion (i) to approve the Peruvian Opcos’ bonus plan and (ii) taking all desirable or necessary corporate governance actions in connection therewith.
The motion explains, “The proposed Bonus Plan for the Senior Management Employees consists of a metric which provides a cash payment based on the amount of aggregate Sale Proceeds (the ‘Sale Metric’) realized in the CFG Peru Sale and the proceeds from any Non-Core Asset Sales. The Sale Metric is designed to incentivize the Senior Management Employees to complete any Non-Core Asset Sales and the CFG Peru Sale process in a manner that maximizes the Sale Proceeds. Each Senior Management Employee is eligible to receive an incentive payment of cash tied to the Sale Metric (the ‘Sale Incentive Payment’), the aggregate amount of which, based on the Sale Proceeds, could range from $4 million (if Sale Proceeds are $1.2 billion) to $10 million (if Sale Proceeds are $1.7 billion). No payout will occur if the Sale Proceeds are less than $1.2 billion.”
In addition, “Through the use of the Sale Metric, the Bonus Plan ensures that the Senior Management Employees push themselves to improve the performance and enterprise value of the Peruvian Opcos, so as to maximize the Sale Proceeds. Importantly, the threshold $1.2 billion in Sale Proceeds – below which no Sale Incentive Payments will be made – is also high enough that, based on the Chapter 11 Trustee’s current calculations, creditors of the Debtor are expected to recover in full.”
The Court scheduled a November 16, 2017 hearing to consider the bonus plan motion, with objections due by November 9, 2017.
Read more CFG bankruptcy news.
The post CFB Bankruptcy KEIP Motion Withdrawn, Bonus Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.