Rockall responds to objection of employee bonus plan

Chicago, April 27 – Rockall Energy Holdings, LLC responded to the objection to the company’s motion seeking approval of a key employee incentive plan, according to court documents filed with the U.S. Bankruptcy Court for the Northern District of Texas on Tuesday.

The objection asserted that the plan was actually an insider retention bonus plan.

Rockall has countered with the assertion that participants in the plan are not insiders but have job duties and responsibilities limited to day-to-day operational responsibilities.

The company listed nine of the participants and gave their job responsibilities, saying that the participants do not report to the company’s board of directors, do not possess authority to independently implement company policy and do not possess authority to control employee compensation or make strategic business decisions on behalf of the debtors.

As previously reported, the objection from the official committee of unsecured creditors said that the plan would deliver a total of $500,000 to the debtors’ insider management for achieving a sale transaction with net proceeds in any amount up to $75 million, making management’s receipt of a bonus under the proposed KEIP contingent only upon the closing of any sale.

The Dallas-based oil exploration and production company filed Chapter 11 bankruptcy on March 9 under case number 22-90000.

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