Court OKs Bonus for Sole Employee Of Blockbuster Over U.S. Trustee’s Objections

The U.S. Bankruptcy Court for the Southern District of New York July 20 granted Blockbuster Inc.'s proposal to pay “incentive compensation” to the movie rental chain’s sole remaining employee over the objection of the U.S. Trustee overseeing the case, and capped the payout at $150,000 (In re Blockbuster Inc.).

Blockbuster Inc., a global provider of rental and retail movie and game entertainment, and 12 affiliated entities filed for Chapter 11 protection Sept. 23, 2010. On April 14, the debtors sold substantially all of their assets to DISH Network Corp.

Blockbuster June 1 asked the bankruptcy court for approval ...