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Orleans Homebuilders seeks court approval of settlement with CEO
By Lisa Kerner
Charlotte, N.C., Oct. 15 - Orleans Homebuilders, Inc. asked the court to approve its Oct. 14 separation and settlement agreement with chairman and chief executive officer Jeffrey P. Orleans, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.
A hearing is set for Nov. 8.
Jeffrey Orleans has been employed by the company for more than 40 years. He's been a director since 1983 and chairman and CEO since 1986, the filing said.
Orleans filed a proof of claim for $129,636.39 and alleges he is entitled to unpaid salary and benefits through Dec. 31, 2011 in an amount that could top $1 million. Also, Orleans is eligible for a payment up to $500,000 under the company's short-term employee incentive plan incorporated into the reorganization plan.
Under the proposed settlement agreement, Jeffrey Orleans will receive $700,000, less applicable withholding for taxes, to settle the claims, including those for deferred compensation, accrued vacation and severance. He will not receive any distributions under the reorganization plan and his health benefits will cease as of the effective date.
As previously reported, Orleans Homebuilders expects to emerge from bankruptcy before the end of the year.
The disclosure statement for Orleans' plan of reorganization has been approved by the U.S. Bankruptcy Court for the District of Delaware. The plan confirmation hearing is scheduled for Nov. 16.
Orleans Homebuilders, a Bensalem, Pa.-based developer, builder and marketer of single-family homes, townhouses and condominiums, filed for bankruptcy on March 1, 2010. The Chapter 11 case number is 10-10684.
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