Ultimate Electronics, creditors committee request key employee retention plan approval

By Caroline Salls

Pittsburgh, July 21 - Ultimate Electronics, Inc. and its official committee of unsecured creditors requested court approval to provide retention packages to key employees, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Following store closings and store sales, Ultimate Electronics said it needs chief financial officer David Carter and chief executive officer and board member Jim Marcum to stay on to assist with "wind-down" activities, including winding down health and welfare plans, preparing two monthly operating reports and tax returns, analysis and disposition of real and personal property leases, continued collection of accounts receivable and analysis and reconciliation of claims.

Under the plan, Carter would receive a fixed bonus of $175,000 in addition to his $325,000 salary, plus a potential performance bonus of up to $150,000 and a covenant not to seek recovery of any claims or causes of action against him.

Marcum would receive continued employment as a consultant at his current rate of $3,000 per day and a retention bonus of the lesser of 70% of his total compensation from April 20 to the end of the case (or until his services are no longer needed) or $150,000.

A hearing is scheduled for Aug. 11.

Ultimate Electronics, a Thornton, Colo.-based consumer electronic retailer, filed for bankruptcy on Jan. 11. Its Chapter 11 case number is 05-10104.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.