Posted 1 year ago
By Fred Gough
WICHITA (AP) – The Justice Department’s bankruptcy watchdog agency is fighting a move by Hawker Beechcraft to pay eight senior executives more than $5.3 million in bonuses.
In a court filing Monday, U.S. Trustee Tracy Hope Davis argues that the Kansas-based plane maker hasn’t shown that its proposed bonus plan isn’t a disguised retention plan.
Bonuses are allowed must include more than a reward for staying with a company.
Hawker Beechcraft calls it an incentive award and says its plans are consistent with its commitment to strongly emerge from bankruptcy.
A hearing on the proposed bonuses is set for Thursday.
The company filed for bankruptcy protection in May. The court approved exclusive talks with a Chinese firm that has offered nearly $1.8 billion to purchase the company’s business jet and general aviation operations.