Westmoreland bankruptcy bonuses good news for company executives

first_img FacebookTwitterLinkedInEmailPrint分享Wall Street Journal ($):Westmoreland Coal Co. paid eight of its current and former executives more than $10.2 million in salary, bonuses and severance in the 12 months before the coal-mining company filed for bankruptcy protection in October.Executives at Westmoreland collected additional compensation in the form of benefits and expense reimbursements over the same one-year period, according to a Thursday filing in the U.S. Bankruptcy Court in Houston. The Englewood, Colo.-based company also listed more than $3.8 million in so-called retainer payments and management fees to its directors.Bankruptcy rules require companies that seek protection from creditors in chapter 11 to disclose payments made to insiders during the 12-month period prior to the bankruptcy filing. Westmoreland paid more than $5.88 million in bonuses and $2.27 million in salary to current and former executives, the filing said. Nearly $1.98 million in severance was paid to the company’s former chief executive officer and president and chief operating officer.The bonuses are described in court papers as incentive awards. Financially distressed companies across industries regularly pay these types of bonuses to executives in the months leading up to a bankruptcy filing.Westmoreland’s senior lenders, who are funding the chapter 11, consented to the bonus payments before the bankruptcy filing, a person familiar with the company’s restructuring told The Wall Street Journal on Friday. The cash bonuses are intended to retain executives who had participated in a long-term incentive program that had been paid in stock but that is now essentially worthless in chapter 11, this person said. Westmoreland’s stock was previously listed on the Nasdaq and is expected to be cancelled in chapter 11, court papers say.Westmoreland filed for bankruptcy protection on Oct. 9, listing about $1.4 billion in debt. The company is seeking concessions from its union employees and retirees. The coal-mining company employs about 1,732 workers overall. Westmoreland is party to seven collective bargaining agreements covering about 900 employees, according to court papers filed in October.More ($): Westmoreland paid millions in executive bonuses in year before bankruptcy Westmoreland bankruptcy bonuses good news for company executiveslast_img

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