Trustee Flags Bonus-Related Terms In Libbey's Ch. 11 Loan

Law360 (June 26, 2020, 8:05 PM EDT) -- The U.S. trustee told the Delaware bankruptcy court Friday to reject Libbey Glass Inc.'s Chapter 11 financing until protections are in place related to litigation that could be pursued over $2.35 million in bonuses paid to five executives just before the bankruptcy filing.

In an objection filed with U.S. Bankruptcy Judge Laurie Selber Silverstein, the Office of the U.S. Trustee asserted that the court should deny final approval of post-petition financing until there is assurance that any proceeds from causes of action related to the bonus payments will go to the bankruptcy estate.

"Any causes of action (and their proceeds) related...

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