NY bankruptcy judge approves Kodak's bonus plans

AP News
Posted: Apr 30, 2012 6:11 PM
NY bankruptcy judge approves Kodak's bonus plans

A U.S. Bankruptcy Court judge has approved Kodak's plan to pay up to $13.5 million in bonuses to retain key managers as it reorganizes under bankruptcy protection.

The Rochester-based company said during a court hearing Monday in New York that turnover has become a serious problem. Kodak proposed the bonuses earlier this month.

Judge Allan Gropper approved the plan despite an objection by the U.S. trustee over concerns Kodak hadn't been clear in guaranteeing the money wouldn't go to top management insiders like Chief Executive Antonio Perez. Kodak responded in a court filing that only non-insiders would get the bonuses.

Kodak says Gropper also approved an agreement that Kodak has with the creditor committee to give Kodak an additional 150 days for the exclusive right to file a reorganization plan.