H2-Brands’ motion for employee bonuses premature, committee says

By Sarah Lizee

Olympia, Wash., Feb. 28 – The motion of Nova Wildcat Shur-Line Holdings, Inc., doing business as H2-Brands, seeking approval of key employee incentive and retention programs drew an objection from the official committee of unsecured creditors, according to documents filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The company is seeking approval to pay in total up to $1.91 million to officers or employees in connection with the programs.

“Consideration of the KEIP and KERP at this juncture is premature,” the committee said in its objection.

The group noted that the cases were filed less than a month ago, the bid procedures haven’t been approved yet and no stalking horse bidder has been approved.

It’s also unclear at this stage whether lenders will be repaid or whether unsecured creditors will see any recovery in these cases, the committee added.

“Simply put, neither the court nor the committee or other parties in interest have enough information at this time to determine whether the KEIP and KERP bonus programs are reasonable or appropriate,” the committee said.

The group asked for the court to adjourn the motion to a later hearing, with a corresponding extension of the objection deadline for the committee, the U.S. trustee and other parties in interest.

A hearing is currently scheduled for March 2.

H2 Brands is a Cranbury, N.J.-based home and hardware products company. It filed bankruptcy on Jan. 29 under Chapter 11 case number 23-10114.

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