The U.S. Bankruptcy Court issued an order approving Aeropostale’s key employee retention plan.
The order states, “The Motion, insofar as it relates to the KERP, is granted as set forth herein, and the hearing on the Motion with respect to the KEIP is adjourned to a date to be determined….Pursuant to an agreement with the United States Trustee for Region 2, three individuals will be removed as KERP Participants, and the amount of the payout under the KERP for one KERP Participant will be reduced to the amount agreed upon by the Debtors and U.S. Trustee. Payouts under the KERP will be made no later than September 30, 2016, 20 days later than the date originally set forth in the Motion.”
As previously reported, Aeropostale’s motion KERP/KEIP explained, “Given the challenges posed by the highly-competitive industry in which the Debtors operate, the Debtors and FTI developed the KEIP and KERP with the goals of (i) incentivizing the KEIP Participants to create value for the benefit of all stakeholders, (ii) motivating and retaining the KERP Participants throughout the Debtors’ restructuring process, and (iii) rewarding the KEIP and KERP Participants at market level compensation.”
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