Quadrant 4 Systems filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the Debtor to pay retention bonuses to four key non-insider employees and granting shortened notice in connection therewith.
The motion explains, “By this Motion, the Debtor requests the entry of an order authorizing it to pay Retention Bonuses to the Key Employees….Each of the Key Employees has been integral in maintaining the going concern value of the Debtor throughout the pendency of the Chapter 11 Case. Specifically, each has worked diligently to minimize attrition of employees of the Debtor and prevent any attrition of customers of the Debtor by serving as a liaison among the Debtor’s bankruptcy professionals, the bidders and purchasers of assets, and the Debtor’s employees and customers.”
In addition, “Without the efforts of the Key Employees, the Debtor would not have been able to maintain its operations after the Petition Date or preserve its going concern value. The Debtor’s going concern value allowed it to solicit and receive stalking horse bids, as well as competing bids for the Acquired Assets, resulting in the Sale of the Acquired Assets to the benefit of the Debtor’s estate. Notably, the gross proceeds of the Sale exceeded the initial stalking horse bids therefore by nearly 100%.”
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