jetdriven
restraint order pending
- Joined
- Dec 23, 2001
- Posts
- 517
WASHINGTON, Jan 4 (Reuters) - Independence Air, which will stop flying on Thursday, is proposing $3.2 million in estimated bonuses to keep key employees on the job as it winds down its corporate operations, bankruptcy records showed.
The judge overseeing the airline's bankruptcy in Delaware would have to approve the plan, which proposes $5.1 million salaries and bonuses for 180 people. Most of those covered by the retention plan would be out of a job within eight weeks.
But most of the money -- including $2.1 million in bonuses -- would go to roughly 22 executives and other workers who remain in salaried positions for at least six months.
The bonuses would equal one year's base pay and would be in lieu of severance. Fewer than 10 officers are expected to remain with the company for more than 12 weeks, the airline said.
Independence said in a filing this week it hopes the plan would encourage employees to complete the job of closing down the carrier's operations and bankruptcy case "properly, prudently and as efficiently as possible."
Retention payments have been used in bankruptcy to keep executives and other employees in vital positions during restructuring or liquidation. Companies argue that executives who stay on will miss out on other job opportunities and should be compensated.
The judge overseeing the airline's bankruptcy in Delaware would have to approve the plan, which proposes $5.1 million salaries and bonuses for 180 people. Most of those covered by the retention plan would be out of a job within eight weeks.
But most of the money -- including $2.1 million in bonuses -- would go to roughly 22 executives and other workers who remain in salaried positions for at least six months.
The bonuses would equal one year's base pay and would be in lieu of severance. Fewer than 10 officers are expected to remain with the company for more than 12 weeks, the airline said.
Independence said in a filing this week it hopes the plan would encourage employees to complete the job of closing down the carrier's operations and bankruptcy case "properly, prudently and as efficiently as possible."
Retention payments have been used in bankruptcy to keep executives and other employees in vital positions during restructuring or liquidation. Companies argue that executives who stay on will miss out on other job opportunities and should be compensated.