High Voltage trustee seeks authorization to implement key employee retention program

By Caroline Salls

Pittsburgh, July 13 - High Voltage Engineering Corp.'s Chapter 11 Trustee requested authorization to implement an up to $603,000 key employee retention program in connection with its stalking horse agreement to sell the assets of Evans Analytical Group to EAG Acquisition, LLC, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Massachusetts.

According to the motion, implementation of the retention program is "vital to the consummation of the sale," since EAG, as the stalking horse bidder, has agreed to pay half of the cost of the program.

Also, EAG has required the program to be implemented under the purchase agreement "due to the prime importance of the key employees to the success of Evans's business going forward."

"The proposed KERP also offers the key employees the incentive to remain in [Evans'] employ through and after the conclusion of the sale," according to the motion.

"Furthermore, the proposed KERP will avoid disruption of Evans's business operations and the costs associated with departure of the key employees, both of which could jeopardize the anticipated sale and hamper the trustee's efforts to effectively market the Evans assets to other bidders if the trustee fails to close the sale with the stalking horse bidder."

The program will cover about 60 Evans employees, and no retention bonus will be more than $23,333.

The retention bonuses will be paid either 90 days after consummation of a sale or termination of a key employee without cause.

A hearing is scheduled for July 25.

High Voltage filed for Chapter 11 on Feb. 8. Its case number is 05-10787.

The New Kensington, Pa., maker of industrial power control and surface analysis products previously emerged from Chapter 11 on Aug. 10, 2004 under a restructuring that converted its 10½% senior notes to equity in the reorganized company.

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