KERPS: You Can't Always Get What You Want

Law360, New York (April 25, 2007, 12:00 AM EDT) -- The purported purpose of a KERP is to retain crucial employees who are necessary to the effective operation of the company and its successful reorganization. Section 503(c) was enacted in 2005 in an attempt to address the “glaring abuses of the bankruptcy system by the executives of giant corporations … [who] … lined their own pockets, but left thousands of employees and retirees out in the cold.” See In re Dana Corp., 2006 WL 3479406 at *5 (Bankr. S.D.N.Y.) (quoting Sen. Edward Kennedy on the Bankruptcy...
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