The U.S. Bankruptcy Court approved PostRock Energy’s Chapter 11 trustee’s motion to terminate the Company’s executive non-qualified excess plan.
As previously reported, “Termination of a deferred compensation plan falls within the sound business judgment of the trustee. The Trustee submits that the termination of the Plan is a reasonable business decision in light of the circumstances and is in the best interest of the estate and its creditors. The termination and rejection will save the costs and expenses associated therewith.”
In addition, “The Rabbi Trust expressly states that the corpus thereof is subject to the claims of the general creditors of Debtor PostRock Energy Services Corporation in the event of its bankruptcy. Thus, upon the commencement of the present case, the corpus of the trust (i.e. the Stock) became property of the bankruptcy estate….Upon termination of the Plan the Stock will be returned to the Debtors. Termination of the Plan and Rabbi Trust will save the Debtors from unnecessarily continue to incur the costs and expenses of administering the Rabbi Trust.”
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