Court caps Furniture Brands bonuses at $3.5 million
Clint Engel -- Furniture Today, October 11, 2013
WILMINGTON, Del. — A U.S. Bankruptcy Court judge here approved a motion to pay bonuses to Furniture Brands International insiders, capping the total possible payments at $3.5 million.
In the earlier motion, the FBI requested bonus "incentives" for seven insiders, based on asset sale proceeds and bankruptcy liquidation, and drawing from a pool that would have been greater than $3.5 million.
The move today followed objections to the original motion by industry analyst Budd Bugatch and the trustee in Furniture Brands Chapter 11 case.
At a hearing Friday, the judge overruled the objections and approved the motions, noting in the order that, "The relief requested in the motion is justified by the facts and circumstances of these cases and in the best interest of the debtors, their estates and all other parties in interest ..."
The court also approved a key employee retention plan and noted that Furniture Brands agreed with the unsecured creditors committee "to make certain modifications" to both plans.
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