Muzak Holdings granted court approval of key employee incentive plan

By Jennifer Lanning Drey

Portland, Ore., April 16 - Muzak Holdings LLC obtained court approval to implement a key employee incentive plan for six members of its senior management team, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion requesting approval of the plan, the company's senior management team is faced with stabilizing Muzak's operations and guiding it through a balance sheet restructuring without the support of a chief restructuring officer or other outside restructuring adviser.

The company said the program offers periodic incentive-based payments if the company meets EBITDAR targets set by the board of directors for fiscal year 2009.

If the targets are not met, the eligible employees will not receive the bonus.

The eligible employees include chief executive officer Stephen Villa, chief financial officer Robert Haynes, chief operating officer Thomas Gantert, vice president, general counsel and secretary Michael Zenden, vice president product and marketing Robert Finigan and controller Alex Brenner, according to the prior motion.

The maximum payout under the incentive program would be $1.75 million if all targets are exceeded by all eligible employees.

Muzak, a Fort Mill, S.C.-based recorded music company, filed for bankruptcy on Feb. 10. Its Chapter 11 case number is 09-10422.

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