If your company is having issues with financial problems or has been accused of employment discrimination you should not try to face these accusations alone. A single accusation of financial misdeeds or employment issues can sink a small company and cause severe financial distress for even a large company. Contact a commercial litigation lawyer in Miami if your company is facing legal issues. You should be focusing on the day to day needs of your business, not fighting in court. A commercial litigation lawyer in Miami knows Florida laws and can protect your interests. Consider this recent case regarding Border’s attempts to restructure.
A bankruptcy judge stated that book seller Borders must make changes its mulit-million dollar bonus plan which is meant to keep high ranking executives as the firm tries to reorganize itself. However, the court hearing ended without reaching any set agreement. This could mean big trouble for Borders
Border’s plan was recently changed so top executives would receive bonuses based only based upon how much money they manage to recover to pay off debts, either through restructuring on the sale of the company. The creditors, who are mostly book publishers, supported the new plan after opposing the original plan. The companies Borders is in debt to has agreed to the proposed plan under the condition that no executives get paid unless Borders manages to recover enough cash for creditors. If Borders cannot afford to pay off some of its debts, no managers or executives will get their bonuses.
The courts insists setting the bonuses was a premature move because Borders has only been in Chapter 11 bankruptcy for a couple of months and has yet to show how they will be able to repay their creditors. The bookseller has plans to meet with a trustee to in order to demonstrate how the new plan is in the best interest of everyone involved. Borders sought to pay over six million dollars to 15 different executives, and over one million dollars to 25 director managers who Border’s insists are critical to the company’s ability to move on from Chapter 11 bankruptcy and profit in the future. This revised plan will create a sliding scale of bonuses for the executives based upon how much money they are able to pay their debtors and provides none if the company is liquidated. The bonus plan must be figured out quickly because retail companies, in particular, must move quickly to restructure them selves and pay off their debts in order to avoid liquidation.
It would be very difficult to replace high ranking officials in charge of day-to-day operations in the middle of the reorganization process, Border’s officials say. As Border’s is fighting to stay in business and pay its employees at a fair rate, it is their commercial litigation lawyers who are doing the fighting. You know how to run your business, and a Commercial litigation lawyer in Miami knows how to keep you there. Do not face your legal issues alone, a Miami commercial litigation lawyer can help you.
Borders must revamp bonuses, by Detroit News Staff and Wire, Aprl 15th 2011