Bankruptcy Law News

U.S. Challenges Intelsat’s $17 Million Request for Exec Bonuses

June 23, 2020, 9:34 PM

Intelsat SA’s request to pay six top executives bonuses for hitting performance marks while reorganizing the bankrupt satellite operator doesn’t appear “genuinely incentivizing,” the Justice Department said, challenging the $17 million proposal.

Intelsat has failed to show that its “key employee incentive program” is anything more than a bid to induce top managers to stay with the company during its Chapter 11 case, the U.S. Trustee’s office said in an objection filed Tuesday at the U.S. Bankruptcy Court for the Eastern District of Virginia.

The U.S. Trustee, which functions as the DOJ’s bankruptcy case monitor, said the Luxembourg-based telecom’s June...

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