Judge’s order to revise Hertz’s ‘criminal’ plan to pay big bonuses

A government judge impacted bankrupt vehicle rental firm Hertz’s proposition to pay top heads a great many dollars in rewards as she killed the arrangement Thursday.

US Bankruptcy Judge Mary Walrath guided the ambushed organization to overhaul its “hostile” proposition presenting to $14.6 million in rewards to Hertz workers, including $5.4 million for senior heads.

Walrath noticed that Hertz previously made about $16 million in supposed maintenance installments to workers before the Florida-based firm sought financial protection in May.

“It appears to be hostile to give senior chiefs rewards” when some of them got additional cash only a couple of months prior, Walrath said during a Thursday hearing.

Walrath disclosed to Hertz’s attorneys to change the objectives organization representatives would need to meet to get the new rewards. The proposition would give the installments to 14 senior heads and around 295 administrators.

“More must be done to show why representatives who got maintenance rewards and consented to remain with the organization won’t put forth a valiant effort to see that the organization endures and succeeds,” Walrath said during the consultation, as per the news administration.

Florida-based Hertz didn’t quickly react to a solicitation for input Friday.

Hertz petitioned for Chapter 11 in May as the Covid pandemic injured worldwide interest for movement. The organization stood out as truly newsworthy in June with a dubious arrangement to raise liquidation financing by selling $500 million in conceivably useless stock. Hertz rejected the arrangement after the Securities and Exchange Commission raised worries about it.

 

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