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Cumulus Media Bankruptcy Objection Filed

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The U.S. Trustee assigned to the Cumulus Media case filed with the U.S. Bankruptcy court an objection to the Company’s motion to continue its incentive compensation program.

The objection asserts, “The United States Trustee objects to the Bonus Motion on the grounds that the Debtors have failed to meet their evidentiary burden of proof to show that the proposed bonus payments comply with Section 503(c) of the Bankruptcy Code. The Debtors seek authority to implement incentive plans for admitted insiders. The plans, however, not only award bonuses for targets that were obtained pre-petition, but also fail to provide information to allow the Court, creditors and the United States Trustee to determine if the metrics used in the plans represent challenging goals.”

The objection continues, “In addition, the Debtors fail to meet their burden to establish that alleged non-insider plan participants, who include executives and officers, are not in fact insiders. In this regard, the Debtors do not provide specific information regarding the job titles, descriptions and reporting relationships of each person they propose to pay under the plans, and therefore, the Court, United States Trustee and other parties in interest have no facts with which to make a reasoned determination as to whether the characterization of non-insider status to each prospective individual is appropriate.”

Read more Cumulus Media bankruptcy news.

The post Cumulus Media Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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