According to the U.S. Bankruptcy Court docket, Nuo Therapeutics filed a redacted motion for entry of an order authorizing and approving key employee incentive plan (KEIP).
The motion explains, “Since the Petition Date, the Debtor and its professionals have, among other things, taken steps to implement a comprehensive sale process that will permit the Debtor to aggressively market, and eventually auction, substantially all of its assets. In furtherance of the marketing and sale process, and in connection with the Debtor’s efforts to maintain and maximize its going concern value, the Debtor’s Board of Directors (the ‘Board’) approved the KEIP to ensure that key personnel are properly incentivized to obtain the highest price for the Debtor’s assets. The Debtor believes that the KEIP (i) provides much needed incentives and assurances to the Debtor’s key employees during this challenging time, and (ii) incentivizes such key employees to outperform and maximize the value of the Debtor’s business during the sale process.”
The KEIP motion continues, “Under the terms of the KEIP, KEIP Participants will receive certain discretionary KEIP Payments out of an increasing pool of funds tied to the total amount of Sale consideration (any such amount, the ‘KEIP Incentive Pool’). The amount of KEIP Payment will be determined, subject to the Debtor’s discretion and reasonable business judgment, based on a number of conditions and milestones…The total cost of the KEIP is expected to be between approximately $150,000 and $380,000.”
The Court scheduled a February 22, 2016 hearing on the motion. Read more bankruptcy news.