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Noranda Aluminum KEIP/KERP Objection Filed

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The U.S. Trustee assigned to Noranda Aluminum Holdings filed with the U.S. Bankruptcy Court an objection to Noranda Aluminum Holdings’ (I) motion for an order authorizing and approving the Debtors (i) key employee incentive plan (KEIP); (ii) key employee retention plan (KERP); and (iii) 2015 incentive compensation plan and (II) motion for an order authorizing the Debtors to file under seal confidential information relating to the Debtors’ motion for approval of certain compensation plans.

The Trustee asserts, “The United States Trustee objects to the approval of the Motion because, among other things, the Debtors have not met their burden of demonstrating: that the KEIP, which is offered exclusively to 19 individuals (5 described as insiders by the Debtors and 14 non-insiders), is not a retention plan subject to the requirements of 11 U.S.C. section 503(c)(1); that all of the 34 KERP participants, including many holding officer or similar titles, are not insiders of the Debtors, and, thus, not subject to the stricter requirements of 11 U.S.C. section 503(c)(1); and that there is any causal relationship between the individual participants receiving bonuses under the plans and the specific target metrics which the Debtors purportedly seek to achieve under the plans, and thus the Debtors cannot meet their burden of demonstrating that the plans are ‘justified under the facts and circumstances of the case’ as is required by 11 U.S.C. section 503(c)(3).”

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The post Noranda Aluminum KEIP/KERP Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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