C&J Energy Services’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court a limited objection to the Debtors’ motion for entry of an order authorizing and approving the non-insider compensation program (NICP).
The objection explains, “The Committee objects to the NICP as proposed. Under the NICP, retention bonuses would be paid out quarterly, with Participants receiving a bonus as long as they are employed on the date the bonuses are paid. Importantly, however, no portions of the bonuses are to be held back by the Debtors until conclusion of the chapter 11 cases. If the intent of the NICP is to encourage the Participants to continue working for the Debtors during the chapter 11 cases, then at a minimum some portion of their bonuses should be held back and made payable on the effective date of a confirmed plan. Without the holdback, there is nothing to dissuade Participants from quitting immediately after bonuses are paid and prior to the conclusion of these bankruptcy cases.”
More on energy sector bankruptcies.