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Real Industry Bankruptcy KEIP/KERP Approved

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The U.S. Bankruptcy Court approved Real Industry’s motion to implement the Real Alloy Debtors’ (i) key employee incentive plan (KEIP) and (ii) key employee retention plan (KERP).

As previously reported, the KEIP motion explains, “The Real Alloy Debtors have therefore developed two plans – the KEIP and the KERP – that are narrowly tailored and designed to maximize the value of the Real Alloy Debtors’ estates through the conclusion of the Sale Process. Specifically, the KEIP is an incentive plan designed for eight (8) executives that will be based on three independent performance metrics: (i) the value of the assets sold in the Asset Sale, (ii) achieving targets related to the Real Alloy Debtors’ net cash flow, and (iii) meeting certain EBITDA targets. The KERP, by contrast, is a plan for approximately 275-300 non-insider employees that will be paid upon the consummation of the Asset Sale, regardless of performance targets….The KEIP provides incentive payments to eight (8) key executives of the Real Alloy Debtors (collectively, the ‘KEIP Participants’), with a maximum base of $1.3 million if 100% of the targets are achieved (and a potential maximum payout of $1.733 million if targets exceed 100%). Absent the KEIP, the KEIP Participants will otherwise not receive a bonus during the period the KEIP is in place.”

The KERP motion explains, “The KERP provides retention payments to 275–300 non-insider employees (collectively, the ‘KERP Participants’) in an aggregate amount of up to $1.3 million. The KERP Participants include employees from various functions, including, but not limited to, sales, human resources, accounting and finance, procurement, legal and operations functions. Payments under the KERP, which comprise 3% to 20% of each KERP Participants’ annual base salary, are important for employee morale and general retention.”

Read more bankruptcy KEIP/KERP news.

The post Real Industry Bankruptcy KEIP/KERP Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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