Judge okays Borders plan to pay $6.6M in bonuses

AP News
|
Posted: Apr 22, 2011 4:08 PM
Judge okays Borders plan to pay $6.6M in bonuses

A lawyer for bookseller Borders Group Inc. says a judge has approved paying executives up to $6.6 million in bonuses as the company works to reorganize under bankruptcy court protection.

The Office of the U.S. Trustee objected to an earlier request to pay about $8 million in bonuses.

Lawyer Andrew Glenn confirmed that a judge in U.S. Bankruptcy Court for the Southern District of New York approved the lower amount on Friday.

Borders says the bonuses are necessary to retain executives in key posts. Forty seven executives have left the company since Borders filed for Chapter 11 bankruptcy court protection in February.

Ann Arbor, Mich.-based Borders wants to emerge from bankruptcy protection by August or September as a smaller and profitable company.