Thread regarding Avaya layoffs

Docket 946 "actively negotiating to enrich themselves"


by | Post ID:
1763 views | 6 replies (last )
Comment! It's anonymous! Reply to this post anonymously by submitting the form near the bottom of the page!

6 replies (most recent on top)

No Moral fiber,

Shame it used to be a Great company

by | Post ID:

No payment of the bonuses they mentioned in the objection have been paid, they are part of the bankruptcy settlement that the judge has to approve. Note also that the unsecured group reps have come to an agreement after the plan was changed to pump up that pool.

The part that bugs me: if they're going to exit with comp, it should be equity, not cash. That is, give them "stock" in the new company.

by | Post ID:


by | Post ID:

Shocking eh!

by | Post ID:

The terms of Mr. Kennedy’s Agreement, which is essentially a golden

parachute, provides for receipt of a minimum payment of $4.375 million in his first

year and $8.75 million over a two year period.3 The terms of Mr. Chirico’s

Agreement provides that he will earn a minimum of $6.25 million in his first year

as President and CEO and a minimum of $10 million over a two (2) year period.4

3 This equals fees of $1.9 million for each of the two years as compensation and a minimum bonus of $2.475 million for each of those two years.

The lack of any discussion in the Disclosure Statement is particularly

troubling because Mr. Kennedy and Mr. Chirico, as two of the Debtors’ most senior

executives (with Mr. Kennedy also a Board member), presumably negotiated their

own Agreements at the same time that they were negotiating the Plan and PSA on

behalf of the Debtors. Without any information as to how the terms of these

Agreements were established and approved by the Board, it appears that Mssrs.

Kennedy and Chirico were actively negotiating to enrich themselves through the

Agreements at the same time they were supposed to be acting as fiduciaries

negotiating the terms of the Plan, PSA and creditor recoveries.

Notably, the post-emergence compensation and bonuses contemplated in the

Agreements total $10,625,000 in year one, which is roughly forty percent (40%) of

the entire $25 million General Unsecured Recovery Pool. For the two year period,

the compensation and bonuses total $18,750,000, or approximately seventy five

percent (75%) of the General Unsecured Recovery Pool, which is projected to pay

creditors just eight percent (8%) of their allowed claims.5 If the Debtors posit that

these facts do not create a conflict of interest, the Disclosure Statement should set

forth their rationale and legal basis for this conclusion.

by | Post ID:

Trustee is either doing the job or going through the motions. The bonuses where slammed but still paid.

by | Post ID:

Post a reply


Related pages

cisco systems earningshp roseville caapple store in anchoragelincoln tech indypercision castpartsapple store renaissance at colony parkverticalnet inchanger orthopedicshow many employees does anadarko havemichaels crafts closingtime warner cable locations san diegotd williamson inc tulsa okwww dealersocketapa oil and gasapple store in costa mesabcu credit union locationskey energy layoffsdealer track holdingstowers watson layoffsmansfield oil salariesone stop honeywellnewfield exploration cosears 88.comst louis boeingcaterpillar job cutsverizon payroll w2ge healthcare salariesbank of amrica.comwalmart hiring freezelockheed king of prussiacarrington college school codeigate in newslockheed martin syracuse jobsblacklist employeenavasota valley electric bill paynatinal oilwell varcopenn west exploration rumorsapple store boca raton mallbank of america dentoneeoc attorney houstonburlington coat factory vakpmg austincablevision tickerconroe post office phone numbersears puerto ricoernst young salaryvermilion energy stock pricehaemonetics corpheinz job cutsmedstar harbor hospital baltimore mdsynta pharmaceuticals incmission valley sports chaletshoppers drug mart company profilelife point hospitalssave mart headquartersracetrac petroleum corporate officebiogen layoffsbaxter deerfield ilwho is the ceo of loweshow much are kmart points worthwalgreens jobs orlandobank of america headquarters charlotte addressrumor has it pooler gadirectv missoulacostco pharmacist salaryhp costa rica jobsernst and young boston officeje dunn construction group kansas city mosunnyvale regional hospitalh4 visa petitionkmart workbenchhoneywell aerospace phoenixcarolinas healthcare system cleveland