A U.S. Trustee associated with bankrupt retailer Pacific Sunwear stated that an executive bonus plan proposed by the company must be rejected as its terms virtually guarantee payments.
However, Pacific Sunwear’s unsecured creditors support the payout plan, believing it will help the company emerge from bankruptcy.
The retailer had filed for Ch-11 bankruptcy in April 2016 and is engaged with creditors to emerge as a viable company post restructuring.
On 24 March 2016, Plan Administrators of Lehman Brothers Holdings Inc. announced that distributions to unsecured creditors would commence from 31 March 2016. However, the distribution will not include proceeds from the recently approved settlement with JP Morgan Chase Bank. The investment bank would pay $1.42bn to Lehman and its affiliates and release approximately $76.5m of restricted funds.
Lehman’s aggregate ninth distribution would total c.$1.6bn which includes:
- $1.3bn of payments on account of third-party claims, including non-controlled affiliate claims
- $0.3bn of payments among the Lehman Debtors and their controlled affiliates as outlined in Exhibit B of Docket # 5234
Taking into account the ninth distribution, Lehman’s total distributions to unsecured creditors will amount to c.$106.9bn including $78.5bn of payments on account of third-party claims, which includes non-controlled affiliate claims and $28.5bn of payments among the Lehman Debtors and their controlled affiliates.
The tenth distribution is anticipated to be made within 5 business days of 30 September 2016.