US court gives go-ahead to banruptcy exit plan, as long as huge bonuses are not paid
Accountancy Age, 24 Jan 2008
A US federal bankruptcy court has agreed to approve the bankruptcy exit plan submitted last week by US-based auto part supplier Delphi Corp which cuts down on the company's US operations.
According to US newsagency reports, US bankruptcy Judge Robert Drain told Delphi to cut cash bonuses for executives to $US16.5m (₤8.5m) from a proposed $US87.9m which the company had planned to distribute to more than 500 managers.
Steve Miller, Delphi chairman, could receive a cash award of $US8.3m, while the company's chief executive officer could get $US5.3m.
The US Department of Labor announced yesterday an emergency grant of more than $US1.8m, releasing $US598,241 initially to Wisconsin to assist about 400 workers affected by the closure of one of Delphi’s plants.
Further reading:
While Richard Branson and his Virgin Galactic team chase the...
Comments
Have your say on this article