November 6, 2018 – The Debtors’ Official Committee of Unsecured Creditors filed an objection [Docket No. 259] to Aralez Pharmaceuticals’ US KEIP motion [Docket No. 152]. The Committee asserts, “The Committee recognizes that, as a general matter, incentive and retention plans that meet applicable statutory requirements and are well-designed to achieve value-accretive objectives are appropriate. With that framework in mind, and after conducting appropriate diligence, the Committee has determined that the KERP should be approved. The Committee does not, however, reach the same conclusion respecting the KEIP…the KEIP does not comport with Section 503(c) and is not designed to achieve value-accretive objectives. Rather, it bears the hallmarks of a disguised retention plan, with targets that are quintessential ‘lay-ups’ and that reward the Executives for simply showing up for work (for which they otherwise draw salary) until estate assets are sold over the next few weeks.”
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