Trustee Challenges Bankrupt Loehmann's Exec Bonuses

Law360, New York (January 3, 2014, 6:44 PM EST) -- The U.S. Trustee watching over Loehmann’s Holdings Inc.’s bankruptcy on Thursday challenged the company’s request to pay bonuses to two executives, saying the bonuses will actually disincentivize them from providing additional services.

U.S. Trustee William K. Harrington said in court papers that the bonuses, which could be as low as $132,950 or as high as $653,250 depending on the outcome of an auction, do not serve as incentives for the two executives to maximize the value of the company’s assets for the estate. Instead, he argued,...
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