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Performance Sports Group KEIP/KERP Approved

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The U.S. Bankruptcy Court issued an order approving Performance Sports Group’s motion to implement a key employee incentive plan (KEIP) and key employee retention plan (KERP) for certain employees and authorizing payments contemplated thereunder.

As previously reported, “Debtors have identified 6 senior executives to receive payments under the KEIP and 60 non-insider employees to receive payments under the KERP (collectively, the ‘Eligible Employees’), all of whom possess institutional knowledge and skills that are essential to the Debtors’ restructuring efforts.”

Court-filed documents continue, “If the Sale Proceeds exceed the Stalking Horse Consideration by $5,000,000 (i.e. the cash consideration realized by the estates from the purchase price is $580,000,000 after payment of any applicable bid protections), the KEIP Participants will be entitled to Tier 1 ‘Target’ payouts (i.e. 100% of their target bonuses). If Sale Proceeds exceed the Stalking Horse Consideration by at least $50,000,000 (i.e. the cash consideration realized by the estates from the purchase price reaches $625,000,000), KEIP Participants will be entitled to ‘Tier 2’ compensation of 200% of their target bonuses. If cash consideration realized by the estates from the purchase of the available assets exceeds $625,000,000, the KEIP Participants will be entitled to an aggregate payout which equals 3% of the total consideration above $625,000,000 as additional bonus on top of the Tier 2 ‘Stretch’ bonuses.”

In addition. “If the Tier 1 ‘Target’ level is met, the KEIP will have a total plan cost of $1,776,753, which amounts to an average of $296,125 per KEIP Participant. If the Tier 2 ‘Stretch’ level is met, the KEIP will have a total plan cost of $3,553,505, which amounts to an average of $592,251 per KEIP Participant. Payouts were determined based on a percentage of each KEIP Participant’s target bonus. If the Tier 1 ‘Target’ level is met, no KEIP Participant will receive more than $750,000; if the Tier 2 ‘Stretch’ level is met, no KEIP Participant will receive more than $1,500,000.”

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The post Performance Sports Group KEIP/KERP Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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