US bankruptcy trustee objects to Kodak’s US$13.5 mil. bonus plan


AP

ROCHESTER, New York — The U.S. trustee has objected to Kodak’s plan to pay US$13.5 million in bonuses to persuade certain employees to stay with the company as it reorganizes under bankruptcy protection.

The trustee is an arm of the Justice Department charged with monitoring corporate bankruptcy cases. In a U.S. Bankruptcy Court filing Monday, the trustee says Kodak hasn’t shown, as required, that the bonuses it wants to pay won’t go to high-level insiders like Chief Executive Antonio Perez.

Earlier this month, Kodak sought permission to pay about US$8.5 million in bonuses to 119 middle managers and US$5 million more to 200 employees to retain key people who might otherwise leave to pursue other offers. It didn’t identify the potential recipients. A hearing on the request is scheduled for Monday.