My employment agreement was on March 2012. In Oct 2012 my company filed Chapter 11. My name is not on the KERP - recourse?

Question

My employment agreement was on March 2012. In Oct 2012 my company filed Chapter 11. My name is not on the KERP - recourse?

Anonymous Nov 6, 2012 2 views 1 answers

My employment agreement was on March 2012. In Oct 2012 my company filed Chapter 11. The senior management team did not include my name on the KERP list even though I am the VP IT & CIO. The retention bonus lined up for me amounts to 25% of my base pay, whereas the execs that recruited me and signed my employement contract, have created a KERP formula that could lead to 100% or more of their base pay. Do I have recourse?

Michael Corbin · Accepted Answer · 2026-06-15T10:40:04+00:00

Your name doesn't have to be on the KERP list if senior management doesn't consider you a key employee. That is obvious given your exclusion and your proposed bonus. You can certainly hire counsel and challenge this in bankruptcy court by objecting to the KERP, but to be honest, you've got a tough case to prove.

My employment agreement was on March 2012. In Oct 2012 my company filed Chapter 11. My name is not on the KERP - recourse?

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