August 11, 2014
The Law360 article “Kid Brands Wants Employee Bonuses For Bankruptcy Sale” reported on developments in the Kid Brands bankruptcy case involving the debtor’s request to pay $360,000 in employee bonuses.
Kids Brands maintains that “the bonuses would go to employees the company deems ‘essential’ to the sale of the intellectual property of Kid Brands' lines CoCaLo and Kidsline, and to the liquidation of the remaining assets of those divisions.
“The payment amounts would be based on the sale proceeds of the CoCaLo and Kidsline assets and IP, with the seven workers receiving a total of $140,000 if a minimum value of $14 million is met and up to $360,000 if they can get $18 million or more from the two lines' liquidation.”
The debtor contends that such arrangement, “is a reasonable exercise of its business judgment and is in the best interests of the estate and creditors.”
Partner Eric R. Wilson leads the Kelley Drye team, which includes special counsel Kristin S. Elliott, in representing the creditors’ committee. In commenting on case developments reported in the article, Mr. Wilson said that they are “not currently planning any objection to the bonus plan.”
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