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§ 503(c)

In re Foothills Tex. Inc.

Ruling
Authorization to pay contractually due retention bonuses to two vice presidents of the debtor who were insiders denied.
Procedural posture

Corporate debtors brought a motion seeking authorization to pay contractually due retention bonuses to two vice presidents of the debtors, and thereby assume the retention bonus agreements with the two officers. At issue was whether the recipients were insiders; if so, the failure of the debtors to comply with the requirements of 11 U.S.C.S. § 503(c)(1) would likely bar the payments.

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Commercial opinion summary, case decided on July 28, 2009 , LexisNexis #0909-046

In re Pilgrims Pride Corp.

Ruling
Chapter 11 debtor could hire two former employees as consultants to prevent them from working for competition.
Procedural posture

Pursuant to 11 U.S.C.S. §§ 363(b) and 503(c)(3), the chapter 11 debtors moved for an order to enter into consulting agreements with two former employees. The trustee objected to the motion. The bankruptcy court held a hearing.

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Commercial opinion summary, case decided on February 20, 2009 , LexisNexis #0409-003

In re Global Home Prods. LLC

Ruling
Debtors'management incentive plan and sales bonus plan approved over union's objection.
Procedural posture

Chapter 11 debtors filed a motion for an order authorizing and approving a management incentive plan and a sales bonus plan.

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opinion summary, case decided on March 06, 2007 , LexisNexis #0407-077

Official Comm. of Unsecured Creditors v. Airway Indus. (In re Airway Indus.)

Ruling
Bonuses owed by secured creditor to debtor's executives pursuant to prepetition agreement were not subject to turnover.
Procedural posture

The official committee of unsecured creditors for chapter 11 debtor filed a motion for an entry of an order pursuant to 11 U.S.C. §§ 503, 541, 542 and 105 directing that bonuses provided by a secured creditor and to be paid to four executives of debtor be turned over to debtor's estate or, in the alternative, disallowing or prohibiting payment of the bonuses pursuant to 11 U.S.C. § 503.

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opinion summary, case decided on October 03, 2006 , LexisNexis #1006-108