According to the U.S. Bankruptcy Court docket, SFX Entertainment filed a motion for an order approving its implementation of (i) a key employee incentive plan (KEIP) and (ii) a key employee retention plan (KERP), each in connection with the sale of certain of the Debtors’ non-core business units.
The motion explains, “The success of the Debtors’ NCU sale efforts is dependent upon the goodwill and support of their employees. As the Debtors’ implement the sales of their NCUs, it is imperative that the Debtors’ key personnel are appropriately incentivized to maximize the price of any sale transaction to ensure optimum recovery for all stakeholders…the majority of the value of the NCUs the Debtors are preparing to sell (including Beatport and Fame House) relates to the human capital that will travel with the businesses in connection with a sale. Accordingly, it is important to the success of the Debtors’ sale efforts that the NCU Key Employee Programs be implemented.”
The motion continues, “Moreover, the Participants have been and will be called upon to expend significantly more hours during the sale processes than contemplated by the normal terms of their employment. In order to successfully, effectively, and efficiently accomplish orderly sale processes that maximize recovery for all stakeholders, the Debtors determined that formulating the NCU Key Employee Programs was in the best interest of their estates and all parties in interest. The NCU KEIP will help ensure that key executives and employees who are essential to the sale processes are properly motivated to maximize value for the Debtors, their estates, their creditors and their stakeholders. The NCU KERP ensures that certain non-insider key employees, without whom the Debtors could not successfully market and effectuate a sale of their NCUs, remain with the Debtors throughout the NCU sale processes.”
The Court scheduled a March 21, 2016 hearing on the motion, with objections due by March 14, 2016. Read more SFX bankruptcy news.
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