The U.S. Bankruptcy Court approved Rentech’s redacted key employee incentive plan (KEIP) motion.
As previously reported, “The KEIP will appropriately incentivize the Key Employees – including three of Rentech’s highest ranking senior executives (i.e., its Chief Financial Officer, General Counsel and Senior Vice President, Human Resources), who are most directly involved in the sale of certain of the Business Units and wind down of the Debtors….Upon the consummation of a Sale transaction, a Pool equal to 2% of the value of such transaction will be created. Subject to the terms of the KEIP, each Key Employee will receive an award in respect of the Pool, which will be the greater of (i) his or her percentage of the total Pool and (ii) the minimum payout established for any consummated transaction. Minimum payouts have been set at 0.8% of the estimated value of a successful transaction.”
In addition, “Pursuant to the KEIP, upon or within 15 days after the closing of any Sale Transaction, each Employee will receive 50% of his or her total ward payable under the KEIP with respect to such Sale Transaction, the ‘Closing Payment’, with remaining 50% of the Closing Payment (the ‘Final Payment’) of such award payable upon the earlier of the sale of the final Business Unit owned by the Company or June 30, 2018 the ‘Final Payment Date.'”
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