VPX Sports gets approval of $2.77 million employee retention plan

By Sarah Lizee

Olympia, Wash., Dec. 5 – Vital Pharmaceuticals, Inc., which does business as VPX Sports, got approval of an up to $2.77 million key employee retention plan, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

The KERP participants include 151 non-insider employees, as previously reported.

The payments represent fixed cash amounts, payable in three lump sums based on the continued employment of the participants.

Individual payments range from about $7,154.17 to $56,200.64, and average about $18,323.42 per participant.

Following Friday’s court order, participants will be paid about 25% of the total KERP payment. On March 31 each participant will be paid another 25%. On the earlier of the effective date of a Chapter 11 plan or the closing of a sale transaction, the KERP participants will receive the remaining balance.

“To date, the debtors have incurred significant and costly employee losses both before and following the petition date, resulting in a high degree of uncertainty among the debtors’ employees regarding their job security, and consequently, impacting overall employee morale and productivity,” the company said in the motion.

The Pembroke Pines, Fla.-based the maker of Bang energy drinks and other products filed Chapter 11 bankruptcy on Oct. 10 under case number 22-17842.

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