US Trustee Blasts Avaya's $50M Bonus, Severance Plan
Law360, New York (February 2, 2017, 1:36 PM EST) -- Bankrupt telecom giant Avaya Inc. shouldn't pay employees up to $50 million in bonus and severance payments without providing more information to determine if the payments are appropriate, a federal trustee argued in New York federal court on Wednesday.
The court overseeing Avaya’s Chapter 11 doesn’t have the requisite information to weigh whether the debtor can continue those payment programs, including how many employees are eligible to receive payments, the total amount Avaya may be liable to pay under each program and the applicable laws behind the request, according to U.S. Trustee William K. Harrington.
“Although it is difficult to discern...
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