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Paragon Offshore Program Approval Sought

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Paragon Offshore filed with the U.S. Bankruptcy Court a motion for authority to (i) implement a post-petition early retirement program and (ii) pay severance to individuals whose employment with the Debtors may be terminated in the future.

The motion explains, “The Debtors are seeking to implement the Early Retirement Program, pursuant to which employees age sixty (60) or above who have been employed by the Debtors (or their former parent, Noble Corporation plc) for at least ten (10) years (the ‘Eligible Employees’), may elect, on a voluntary basis, to retire early in exchange for a payout, subject to the execution of a Release. In total, there are an estimated fourteen (14) Eligible Employees….The Debtors estimate that the total Early Retirement Payments that would be paid to an Eligible Employee range from approximately $7,900 to $110,000….In the event that the Debtors do implement a future reduction in force while in chapter 11, the Debtors do not anticipate the amount of Postpetition Severance Payments to exceed $850,000 in the aggregate for approximately 10 employees.”

The Court scheduled a May 11, 2016 hearing to consider the motion. Read more bankrupt company news.