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Energy Future Holdings Compensation Program Filed
Energy Future Holdings filed with the U.S. Bankruptcy Court a motion to approve its 2015 compensation programs. The motion explains, "Specifically, the Motion seeks the approval for 2015 of (a) discretionary incentive compensation programs that will encourage and reward exceptional performance by all employees and (b) certain retention bonus programs for non-insiders. As with the 2014 programs, the Debtors' senior employees are eligible to earn market-based bonuses if - and only if - the Debtors meet challenging financial and operational targets that will generate substantial value for the Debtors and all of their stakeholders....The Cost of Insider Executive Annual Incentive Plan is $8.0 million at target, payable February/March 2016. The Key Leader Performance Program cost is 4.3 million....The cost of 2015 annual incentive Plan is $56.1 million. The cost of non-insider executive annual incentive Plan is $4.3 million at target. The Key Leader Plan costs $6.3 million....Each employee in the EAIP is eligible to receive an incentive compensation award equal to a target portion of his or her base salary if - and only if - the Debtors meet difficult-to-satisfy performance incentive metrics, which vary by business unit based on the employee's role. The individual performance modifier, which may range from 0% to 150%, is recommended by the applicable business unit's leaders after an extensive performance review and calibration processes across the business units and is ultimately approved by the Debtors' seven-member Strategy & Policy Committee (the 'SPC')....The Debtors also accrue approximately $3 million over the course of the year in a 'presidential pool' that allows the Debtors' Chief Executive Officer to authorize the Debtors to make EAIP and AIP payments to employees in addition to amounts accrued based on the Debtors' performance in accordance with the final individual performance modifiers." The Court scheduled a December 18, 2014 hearing to consider this motion, with objections due by December 11, 2014. Subsequently, the Debtors also sought to file under seal certain portions of commercially-sensitive information set forth this motion.
LDK Solar Systems Plan Confirmed
The U.S. Bankruptcy Court entered an order confirming LDK Solar Systems' Prepackaged Plan of Reorganization. LDK Solar Systems, Inc. operates as a subsidiary of LDK Solar CO., Ltd., which filed for Chapter 15 protection on the same date that LDK Solar Systems and two other U.S. Debtors filed for Chapter 11 protection. In addition to entry of the confirmation order, the Court also entered an order recognizing LDK Solar CO.'s provisional liquidation proceeding in the Grand Court of the Cayman Islands as a foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code and an additional order recognizing and giving full force and effect in the jurisdiction of the United States to LDK Solar CO.'s Cayman Islands scheme of arrangement. "The U.S. Bankruptcy Court's rulings, which follow favorable rulings from the Grand Court of the Cayman Islands and the High Court of Hong Kong, are the final court approvals necessary for us to execute the various documents with our creditors to consummate the international restructuring of our offshore liabilities. Now with more than US$700 million in our offshore claims judicially approved for restructuring, we can focus our attention on rebuilding LDK Solar's position in the marketplace," stated Xingxue Tong, interim chairman, president and C.E.O. of LDK Solar CO. Privately-held LDK Solar Systems filed for Chapter 11 protection on October 21, 2014, listing more than $500,000 in pre-petition assets.
ALCO Stores GOB Sales Approved
The U.S. Bankruptcy Court issued an order authorizing Tiger Capital Group, SB Capital Group and Great American Group to conduct going out of business sales in each of ALCO Stores' 198 store locations. More than $260 million of inventory, fixtures and equipment will be liquidated during the sale, which begins November 21, 2014. Daniel Kane, managing member of Tiger Capital Group, comments, "In addition to the convenience of being able to shop locally, the chain distinguished itself by emphasizing the kind of friendly, personal service that small-town consumers expect. Unfortunately, many of ALCO's small-town customers were disproportionately impacted by the slow economy. These economic factors ultimately led to the difficult decision to liquidate all of ALCO's assets." ALCO stores, which average 25,000 square feet in size, are located in Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Texas, Utah, Wisconsin and Wyoming. All stores will maintain their normal business hours during this liquidation sale. In addition to the liquidation of merchandise inventories, fixtures and equipment from all 198 stores, assets from the Company's 352,000-square-foot distribution center in Abilene, KS will also be sold.
Dendreon Compromise Approval Sought
Dendreon filed with the U.S. Bankruptcy Court a motion to approve a compromise, under Rule 9019, for entry of an order (i) approving a stipulation, (ii) authorizing the advancement and reimbursement of defense costs and other loss related thereto, (iii) authorizing the advancement and reimbursement of defense costs and other loss by the remaining excess insurers and (iv) granting related relief. The motion explains, "The Stipulation provides that in connection with the settlement and in consideration of certain releases set forth in the Stipulation, within ten (10) business days after entry of an order of the Chancery Court scheduling a hearing on the Stipulation, the Individual Defendants will cause to be paid $4,500,000 (the 'Settlement Payment') into an escrow account established by counsel to the Individual Defendants....The Settlement Payment will be used to pay any attorneys' fees and expenses awarded by the Chancery Court to plaintiffs' counsel as well as any costs of notice. Such fees and costs may not exceed $1,250,000 in the aggregate and the Debtor has reserved its right to object to any motion seeking fees in excess of that amount. The remaining amount of the Settlement Payment, expected to be approximately $3,250,000, will be paid from the escrow account to the Debtor's estate upon the entry of, and in accordance with, an order of the Chancery Court giving final approval of the settlement....Under the terms of the Stipulation, after approval of the settlement by the Chancery Court the Debtor's estate will receive a cash payment of approximately $3,250,000 - cash that would otherwise not be available for the benefit of creditors." The Debtors also filed a motion to shorten notice regarding the above compromise.
Exide Technologies Transition Reported
According to documents filed with the SEC, Exide Technologies announced that Transportation Americas intends to transition to a new third party vendor. The documents explain, "On November 17, 2014, Exide Technologies filed with the Bankruptcy Court (1) a proposed plan of reorganization and (2) a related proposed disclosure statement. Proposed Financial Projections were attached to the Proposed Disclosure Statement as Exhibit B (the 'Proposed Projections'). The Proposed Projections contained certain assumptions for Exide's Transportation Americas business unit that included an ongoing relationship with one of the division's largest customers by volume. On November 18, 2014, Exide was informed by this customer that it would transition its relationship to a new third party vendor over the next several months. Thus, the assumptions underlying the Proposed Projections as they relate to Exide's relationship with this customer are no longer valid. These events may have a negative effect on the financial results portrayed in the Proposed Projections relative to Exide's Transportation Americas business unit. The Company is currently evaluating the extent of the effect of these events on the Proposed Disclosure Statement, the Proposed Plan and the Proposed Projections."