Colt asks bankruptcy judge for $2.5M in executive payments
WEST HARTFORD, Conn. (AP) — Connecticut-based firearms maker Colt Holding Co. is asking a bankruptcy judge to approve payments totaling $2.5 million for nine top executives.
The Hartford Courant reports (http://cour.at/1Jb3Cn0 ) the bonuses would be paid if an executive is fired, resigns because of reduced pay under future owners or moves. The bonuses would be paid if the company reaches a certain profit before January.
The West Hartford-based company is trying to eliminate $350 million in debt to creditors.
The company also is seeking to drop a provision in a union contract for production workers to keep current compensation through the contract’s end in March 2019.
The restructuring officer says the promised payments would be an incentive for key employees to do bankruptcy-related work and not quit before the company emerges from bankruptcy.