Quadrant 4 Systems filed with the U.S. Bankruptcy Court a motion for an order authorizing the Debtor’s key employee incentive program (KEIP).
The motion explains, “For a variety of reasons, including the limited availability of resources and the concentrated sale efforts focused on other Business Units, the Debtor was not simply not able to sell the Remaining Assets on the same accelerated timeframe as the other Business Units. The Debtor nonetheless seeks to realize a going concern sale for the Remaining Assets and requires Mr. Steele’s expertise and knowledge of the assets and the unique factors involved in the Chapter 11 Case to obtain stalking horse bidders for such assets, maintain the underlying business operations, oversee an auction process, and ultimately close such sales.”
In addition, “Mr. Steele’s background in the healthcare IT industry, his history with the Debtor in entering that industry, and his tireless efforts to assist the Debtor and its professionals in consummating sales of the five Business Units during the Chapter 11 Case to date, make him uniquely qualified to shepherd the Debtor through the next phase of the Chapter 11 Case – the marketing and sale of the Remaining Assets. Obtaining stalking horse bids and closing sales of these assets is by no means guaranteed, especially in light of the nature of the assets and that the consent of both secured lenders is required due to the significant secured debt that is outstanding….Mr. Steele shall be entitled to a payment in the amount of one and one half percent (1.5%) of the purchase price of any assets which are the subject of a Sale Transaction.”
The Court scheduled a September 28, 2017 hearing on the motion.
Read more bankruptcy news.