Post by The Ultimate Nullifier on Sept 28, 2015 9:52:24 GMT -6
www.hollywoodreporter.com/thr-esq/relativity-bankruptcy-objections-employee-retention-827537
Relativity Bankruptcy: Objections to Employee Retention Plan Resolved
The judge has agreed to seal employee-by-employee incentive targets so no one will be able to mathematically figure out their salaries.
Objections to an employee incentive plan were resolved at Monday's hearing in Relativity's Chapter 11 bankruptcy case. At the hearing, debtor attorney Craig Wolfe disclosed that discussion with the United States Trustee have led to a resolution of the concerns over the debtor's plan to give key employees incentives so as to retain them through the bankruptcy process. The trustee had argued that there hasn't been enough justification for the incentive plan under bankruptcy code, that Relativity has fallen short on articulating the procedures on how bonuses will be awarded, and that some of the individuals who are primed to receive them fit the definition of "insiders."
Changes to the plan, it was said at the hearing, have been "largely non-economic." The judge has now agreed to seal employee-by-employee incentive targets so no one will be able to mathematically figure out their salaries.
Relativity wants to pay 81 employees bonuses after the sale is completed. Many of them took pay cuts at the time of the Chapter 11 filing. The group includes president Tucker Tooley, co-COO Greg Shamo, managing director Carol Genis, CFO and co-COO Andrew Matthews and television CEO Tom Forman and managing director Andrew Marcus. In court papers filed on Sunday night, the debtors talked about their role in assisting the bankruptcy process. In total, Relativity wanted to pay out about $1.5 million.
Today's hearing in Relativity's Chapter 11 case comes just days before an auction for the studio's assets set for Oct.1 with a sale aimed to be completed by October 30.
In advance, a high number of production companies, distributors and labor guilds have filed objections to the sale, pushing for bigger control and better assurances they will be taken care of by whomever purchases the assets of Ryan Kavanaugh's Relativity.
Among the objectors is Netflix, which court papers reveal has paid $283 million in license fees for Relativity's films since 2010. The streaming service has told the New York bankruptcy court that Relativity will likely miss the minimum number of films it has to deliver this year.
The bankruptcy hearing is also scheduled to take up the objection of Macquarie Investments, which had provided millions in loans for the films, The Woman In Black 2: Angel Of Death, The Lazarus Effect and Beyond The Lights and claimed a lien on the domestic distribution agreements.
More to come...
Relativity Bankruptcy: Objections to Employee Retention Plan Resolved
The judge has agreed to seal employee-by-employee incentive targets so no one will be able to mathematically figure out their salaries.
Objections to an employee incentive plan were resolved at Monday's hearing in Relativity's Chapter 11 bankruptcy case. At the hearing, debtor attorney Craig Wolfe disclosed that discussion with the United States Trustee have led to a resolution of the concerns over the debtor's plan to give key employees incentives so as to retain them through the bankruptcy process. The trustee had argued that there hasn't been enough justification for the incentive plan under bankruptcy code, that Relativity has fallen short on articulating the procedures on how bonuses will be awarded, and that some of the individuals who are primed to receive them fit the definition of "insiders."
Changes to the plan, it was said at the hearing, have been "largely non-economic." The judge has now agreed to seal employee-by-employee incentive targets so no one will be able to mathematically figure out their salaries.
Relativity wants to pay 81 employees bonuses after the sale is completed. Many of them took pay cuts at the time of the Chapter 11 filing. The group includes president Tucker Tooley, co-COO Greg Shamo, managing director Carol Genis, CFO and co-COO Andrew Matthews and television CEO Tom Forman and managing director Andrew Marcus. In court papers filed on Sunday night, the debtors talked about their role in assisting the bankruptcy process. In total, Relativity wanted to pay out about $1.5 million.
Today's hearing in Relativity's Chapter 11 case comes just days before an auction for the studio's assets set for Oct.1 with a sale aimed to be completed by October 30.
In advance, a high number of production companies, distributors and labor guilds have filed objections to the sale, pushing for bigger control and better assurances they will be taken care of by whomever purchases the assets of Ryan Kavanaugh's Relativity.
Among the objectors is Netflix, which court papers reveal has paid $283 million in license fees for Relativity's films since 2010. The streaming service has told the New York bankruptcy court that Relativity will likely miss the minimum number of films it has to deliver this year.
The bankruptcy hearing is also scheduled to take up the objection of Macquarie Investments, which had provided millions in loans for the films, The Woman In Black 2: Angel Of Death, The Lazarus Effect and Beyond The Lights and claimed a lien on the domestic distribution agreements.
More to come...