BIND Therapeutics filed with the U.S. Bankruptcy Court a motion for an order authorizing the Debtors to honor certain severance obligations related to its executive bonus plan for certain key management employees (the Executives).
The motion explains, “The Debtors estimate that the total amount of severance that is owed to the six Executives with Executive Contracts is $2,308,531.48–an average of $384,755.25 per Executive. However, pursuant to the APA, Pfizer agreed to assume severance obligations for three of the Executives, Jonathan Yingling, Stephen Zale and Daniel Koerwer, totaling $1,048,483.68 (which amount has already been provided by Pfizer (Purchaser) to the Debtors), leaving an aggregate severance obligation to the Executives owed by the Debtors of $1,260,047.80….The Debtors believe Mr. Lynch is owed approximately $90,000 under the Lynch Separation Agreement. In addition, Mr. Lynch is eligible to receive an additional consulting fee in the amount of $74,144 based on the 2015 bonus of the Debtors’ Chief Executive Officer.”
The motion continues, “Pursuant to the Executive Bonus Plan, the Debtors seek authorization to pay Executive Bonuses to six of the Debtors’ former Executives: Andrew Hirsch–$158,400, Hagop Youssoufian–$112,000, Daniel Koerwer–$91,000, Greg Troiano–$63,600, Donald Parsons–$50,000 and Stephen Zale–$57,200. In total, the Debtors owe $532,200 to the Executives under the Executive Bonus Plan for bonuses earned in 2015, which have been approved by the Debtors’ Board of Directors.”
The Court scheduled an August 24, 2016 hearing to consider the severance motion, with objections due by August 17, 2016. Read more bankruptcy news.