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Osage Exploration and Development Objection Filed

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According to the U.S. Bankruptcy Court docket, Osage Exploration and Development’s official unsecured creditors’ committee filed an objection to the Debtor’s motion for entry of an order authorizing and approving an employee incentive plan (EIP).

The objection explains, “The only facts publicly disclosed in the Motion are that the Debtor is proposing in the Employee Incentive Plan (‘EIP’) to pay extra compensation to the four remaining Employees to stay with the Debtor until the Sale closes. From these facts, the Debtor asserts that the EIP is an ‘incentive’ payment plan that this Court can approve under the Bankruptcy Code provisions governing ‘severance’ payments. But paying the Employees extra compensation to simply mind the store until closing is not incentivizing and is no different than the retention plans banned under BAPCPA. Under section 503(c) of the Bankruptcy Code, therefore, this Court must reject this disguised retention payment plan. Even if this Court were to find that the EIP is facially an incentive plan, it must still be rejected.”

The objection continues, “The alleged EIP fails because there are no performance targets for the Employees to actually incentivize their work (e.g., enhancement of the purchase price, increased distribution to creditors, etc.). And there are no metrics for this Court to determine whether the Employees are doing something above and beyond what they would ordinarily do to earn their normal salaries. From the Motion, all this Court can rely on is the platitudes of the Debtor and its advisor to approve a payment plan that they designed for themselves.”

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The post Osage Exploration and Development Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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