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OFS International committee objects to employee retention plan
By Sarah Lizee
Olympia, Wash., July 20 – OFS International, LLC’s official committee of unsecured creditors objected to the company’s motion seeking approval of a key employee retention plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.
“KERPs must be viewed in their appropriate context according to the facts of each case in order to balance the business needs of the debtors against the rights of other stakeholders, including general unsecured creditors,” the committee said in its objection.
The debtors propose to offer over 37% of their workforce, which is 47 employees out of 125 total employees, KERP payments totaling $809,162.92.
“The proposed KERP covers an unusually broad range of employees and proposes payments that are substantially high – multiple payments to each employee participant totaling one month of salary – given the market conditions the debtors’ employees would encounter should they seek alternative employment,” the committee said.
The committee also said the KERP seeks to include employees that fall within the bankruptcy code’s definition of an insider without satisfying the conditions of the bankruptcy code.”
The Houston-based company provides oil company tubular goods and services. The company filed bankruptcy on May 31 under Chapter 11 case number 21-31784.
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