DURA's Ch. 11 Employee Bonuses OK'd In Delaware

Law360 (December 3, 2019, 4:59 PM EST) -- A Delaware bankruptcy judge on Tuesday approved up to roughly $2 million in employee bonuses as part of the Lynn Tilton-helmed automotive parts maker DURA Automotive Systems' Chapter 11 despite the federal bankruptcy watchdog's concern that certain employees should not be eligible for the pay.

During a hearing in Wilmington, U.S. Bankruptcy Judge Karen B. Owens said aspects of the plan gave her "pause," given that the Office of the U.S. Trustee questioned whether eight of the 37 employees set to receive bonuses are "insiders" as defined by the Bankruptcy Code that shouldn't be eligible to benefit from DURA's "valued employee program."...

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