The U.S. Bankruptcy Court approved Tidewater’s motion for entry of an order approving the Company’s non-insider key employee retention payment program (KERP).
As previously reported, “Prior to the commencement of these chapter 11 cases, the Debtors, with the assistance of their advisors and input from the board of directors (the ‘Board’), designed and implemented a Key Employee Retention Program (the ‘KERP’) for certain employees who are not insiders. The KERP is consistent with industry standards, addresses the acute risk of employee attrition, and eliminates potential distractions that could adversely affect performance during the Debtors’ reorganization. As of the commencement of these chapter 11 cases, there are 55 employees participating in the KERP.”
In addition, “By this Motion, the Debtors request authority to honor a KERP payment totalling approximately $950,000 in the aggregate that, absent commencement of these cases, would have been paid on June 15, 2017. If approved, each eligible employee will receive approximately $17,300. The Debtors believe that requesting approval of the KERP payment at this juncture of these chapter 11 cases is well within their business judgment, is critical to maintaining and appropriately incentivizing their work force, and will help promote a successful reorganization consistent with the intent and purpose of chapter 11.”
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