ProtoStar Exec Incentive Plan Hits Turbulence

Law360, New York (November 17, 2009, 12:49 PM EST) -- Bankrupt satellite operator ProtoStar Ltd. is facing stiff opposition to an incentive plan that aims to provide eight key executives with a set percentage of the $210 million sale of one subsidiary.

In separate motions filed Monday in the U.S. Bankruptcy Court for the District of Delaware, both the acting U.S. trustee overseeing the ProtoStar bankruptcy and the company's committee of unsecured creditors expressed concerns that the proposed incentive plan was simply a retention plan aimed at keeping certain insiders at ProtoStar.

“The debtors have essentially...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.