Company Gives Out Executive Bonuses during Business Bankruptcy

One organization sparked a controversy recently when their business bankruptcy judge allowed the company to give out millions of dollars in bonuses to a few hundred top managers in the company. According to some reports, the company is justifying the bonuses by saying that they need to compensate their top employees for their efforts to keep the company running during the last few years of the bankruptcy proceedings.

The massive media company owns major newspapers across the country and has struggled with debt since the rise of Internet news sites. With major losses in its primary revenue streams including newspaper sales and ad sales, the organization filed for bankruptcy in 2008 and is still working on a plan to reorganize the company's debt.

The plan to distribute bonuses to hundreds of top managers was approved by the bankruptcy judge under the stipulation that the managers meet specific performance criteria. The court is still considering the company's proposals for reorganization, which will likely protect the organization from payments to a number of creditors.

If you are considering business bankruptcy in Chicago, you'll want to hire a Chicago bankruptcy lawyer that has handled cases that are similar to yours. To get experienced legal help, contact Bizar & Doyle, LLC today.