This is for lower level managers than the 5 covered by the KEIP. Introductory paragraph:
"As discussed below, the KERP Motion seeks approval of an aggregate bonus pool of approximately $5 million dollars. The average range of KERP bonuses start at $6,000 to $10,000 for Staff Managers and go to an astounding $100,000 to $200,000 for Executive Vice Presidents. The KERP Motion cannot be approved by the Court for three specific
reasons. First, the participants in the KERP have not been identified, or yet determined, by the Debtors. Without identifying the bonus recipients, the KERP Motion is too vague for this Court to approve. Indeed, the Debtors seek approval of a fund to pay whomever they want, whenever they want. Second, it appears that if approved, bonuses will be paid to “insiders” as that term is defined in the Bankruptcy Code. Specifically, although the KERP Motion does not identify the KERP participants, it does state that the KERP will include Executive Vice Presidents, Senior Vice Presidents and Vice Presidents, presumed “insiders” under the Bankruptcy Code. The Debtors, however, fail to demonstrate that the KERP provisions meet the requirements of the Bankruptcy Code that govern the payment of bonuses to insiders. Finally, the Debtors provide virtually no information from which the Court, creditors and the United States Trustee can reasonably assess whether the Debtors have met their burden of proof to demonstrate that the KERP is justified by the facts and circumstances of these cases. For all these reasons, the KERP Motion must be denied."
http://www.kccllc.net/windstream/document/1922312190503000000000014