Capmark Financial Group Inc. is seeking to pay $8.8 million in bonuses to insiders, tied to the completion of sales of the commercial property lender's assets and confirmation of a Chapter 11 plan.
The bonus program is necessary to "align" those employees' interests with those of the company's stakeholders, Capmark said in papers filed Thursday with the U.S. Bankruptcy Court in Wilmington, Del.
Capmark, which is trying to sell assets in an effort to repay creditors, said the bonuses would "incentivize the insider employees to continue working tirelessly" to maximize the value of the company's remaining assets and to quickly complete a bankruptcy-exit plan.
To get all $8.8 million in payments, eligible employees must meet goals, for example, sale of the company's Taiwan assets for more than $50 million.
