| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Gissing North America LLC > News item |
Gissing: Committee and trustee object to key employee plans
Chicago, Nov. 7 – Gissing North America LLC’s key employee incentive program and key employee retention program are being objected to by both the official committee of unsecured creditors and Regions 3 and 9 U.S. trustee Andrew R. Vara, according to multiple motions with the U.S. Bankruptcy Court for the Eastern District of Michigan.
The key employee plans have just been filed on Oct. 31, days before the sale of the debtors’ assets are expected to close on Nov. 15. The Nov. 15 date is an extension from Oct. 31, as no qualified bids had been received by the original closing date.
A qualified bid has now been received.
The plans cover a key employee incentive program for nearly $100,000 to be paid to two individuals and a key employee retention program for approximately $200,000 to be paid to 22 employees.
Trustee Vara says the plan for the two employees is not a true key employee incentive program and should be evaluated under the more stringent guidelines of a retention program, and under the more stringent guidelines the program would fall short.
The second retention program for the 22 employees supposedly does not benefit insiders; however, trustee Vara says that some of the employees do appear to be insiders.
He also finds the timing unusual, days before the sale. Gissing, he says, has not demonstrated a need for the programs.
The committee of unsecured creditors also objects to the programs. However, because the objection will contain commercial information that was previously sealed, the objection of the committee has been submitted under seal.
The Bingham Farms, Mich.-based company is a manufacturer of acoustic systems for the automotive industry. The company filed bankruptcy on Aug. 8 under Chapter 11 case number 22-46160.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.