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Appvion Bankruptcy KERP Approval Sought

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Appvion filed with the U.S. Bankruptcy Court a motion to approve the Debtors’ key employee retention plan (KERP).

The motion explains, “The Company shall pay to each KERP Participant an amount (the ‘KERP Amount’) ranging from 12% to 25% of the KERP Participant’s 2017 base salary, depending on the KERP Participant’s tier level. Tier I is 25% of base salary and Tier II: 20% of base salary and Tier III: 12% of base salary. The KERP Amount shall be payable in the following manner: (i) one-third of the KERP Amount on December 31, 2017; and (ii) two-thirds of the KERP Amount on the later of the consummation of a Restructuring Transaction or June 1, 2018….The Company shall establish a pool of approximately $50,000, plus any KERP Amounts forfeited by KERP Participants, solely for the purposes of providing compensation to the Company’s remaining non-officer employees during the Company’s restructuring efforts. Of these amounts, no more than $10,000 may be awarded to any single employee. The determination to provide such compensation shall be made by the Chief Executive Officer, or such other person(s) as he may delegate, in his/their sole discretion.”

In addition, “Tier 1 Participants would receive 25% of their 2017 base salary, Tier 2 Participants would receive 20%, and Tier 3 Participants would receive 12%. In total, the KERP provides for a maximum aggregate pool of approximately $1 million.”

The Debtors also petitioned the Court to file Exhibit A-1 related to the KERP motion under seal, explaining, “The information set forth in the KERP Exhibit contains identifying information of these Key Employees, including their names and positions which the Debtors submit needs to be protected from the public. If such information were to be made public via PACER or on the Debtors’ case website, confidential information will be disclosed to the detriment of the Debtors, their estates, their creditors, and the Debtors’ employees.” The Court scheduled a November 20, 2017 hearing to consider both the KERP and seal motions, with objections due by November 9, 2017.

Read more Appvion bankruptcy news.

The post Appvion Bankruptcy KERP Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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