Speedcast seeks approval to implement key employee retention plan

By Sarah Lizee

Olympia, Wash., Sept. 25 – Speedcast International Ltd. is seeking approval to implement a non-insider key employee retention plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

The proposed KERP contemplates a maximum payout of roughly $4 million, including up to about $3.7 million in awards for 88 key employees, and $300,000 for a discretionary pool that may be allocated by the debtors to additional non-insider key employees.

Awards to participants will be made in cash in two installments. The first installment is 50% of the award and is payable upon the earlier of confirmation of a plan of reorganization and the date that a sale of substantially all of the debtors’ assets is approved. The second 50% installment will be payable upon the earlier of one month following emergence from bankruptcy and June 30, 2021.

Speedcast is an Australia-based provider of remote communication and IT solutions. The company filed bankruptcy on April 23 under Chapter 11 case number 20-32243.

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