The U.S. Bankruptcy Court issued an order approving TerraVia Holdings’ key executive incentive plan (KEIP).
As previously reported, “The Debtors assert that the modest bonus payments set forth in the KEIP are reasonable and appropriate….The KEIP will provide performance incentives for the Key Executives. As members of the Debtors’ executive management team, the Key Executives are responsible for determining the Debtors’ strategic plan and facilitating the achievement of the Debtors’ sale goals.”
In addition, “The Debtors, with significant input from the DIP Lenders, have established bonus pools (the ‘Bonus Pools’) from which each Key Executive will be eligible to receive a bonus pay-out (a ‘Bonus’) based on a predetermined percentage (the ‘Participation Percentage’)….The Bonus Pools under the KEIP are as follows: For total noteholder consideration of less than $21,000,000 will have a bonus pool of $0; for $21,000,000 it is $500,000; for greater than $21,000,000 bonus pool is $500,000 plus 3% of total noteholder consideration in excess of $21,000,000; provided that the bonus pool shall not exceed $3,500,000.”
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