By Jamie Smith Hopkins, The Baltimore Sun
7:03 PM EDT, July 18, 2012
A federal judge approved Wednesday a potentially multi-million-dollar bonus package for 10 RG Steel executives after the Baltimore County steelmaker modified the proposal in response to objections.
The amount seems unchanged from the original proposal, which the U.S. Trustee Program calculated could be up to $20.3 million. But RG Steel altered the proposal to make some of the payments contingent on sales of its facilities to buyers who intend to operate them.
Both creditors and the U.S. Trustee Program, which oversees bankruptcy cases, objected to the company's original plan. The proposal would "provide outsized rewards" even if the company's assets are liquidated at fire-sale prices rather than sold to new owners who will run them as businesses, the official committee of unsecured creditors said in court papers this week.
Workers are hoping for a buyer to restart idling facilities. RG Steel is laying off nearly 2,000 employees at its Sparrows Point mill.
The company's incentive plan named the 10 executives eligible for the bonuses, after originally holding back. They include CEO John Goodwin and Glenn Mikaloff, general manager of the Sparrows Point mill.
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