Creditors Challenge Bonuses For Photo Co. Execs

Law360, New York (April 3, 2007, 12:00 AM EDT) -- Portrait Corp. of America Inc.’s unsecured creditors have objected to the bankrupt photography company’s plan to give top executives a “king’s ransom” in bonuses, claiming such payments would drastically reduce their own recoveries.

PCA, which declared bankruptcy last August, has proposed paying its chief executive and five managers $2 million lump sums if a potential buyer pays between $65 million and $100 million for the company, the committee said. It also provides for incremental increases.

The unsecured creditors argued that the employees don’t deserve such bonuses,...
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