Lenders who are needed to fund Right Aid's exit from bankruptcy are refusing to pony up unless the CEO's outrageous bonus is cut.
I am stunned. Pleased, but stunned.
Even at the height of the financial crisis, managers got their payouts, though the workers got f%$#ed like a drunk sorority girl:
Rite Aid Corp.’s main lenders are demanding a proposed $20 million payout to Chief Executive Officer Jeffrey Stein be reduced before they fund the company’s exit from bankruptcy, according to people with knowledge of the situation.
The pay package is one of the few remaining points of contention in negotiations that began last October when the company filed for Chapter 11, the people said. The pharmacy chain in April put off a key court hearing in order to complete a deal that would cut $2 billion in debt, resolve lawsuits related to opioid prescriptions and end the company’s prolonged stint in bankruptcy.
The pay dispute comes amid broader concerns among creditors over whether the company will have enough liquidity to support its emergence from bankruptcy, Bloomberg previously reported. Rite Aid has racked up hundreds of millions of dollars in professional expenses since seeking court protection, casting a spotlight on its cash struggles. Lenders have been asking advisers to cut their fees, with some agreeing to do so, the people said. Talks over Stein’s compensation are ongoing, they added.
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The creditor group recently agreed to inject $75 million in incremental financing to help build up the chain’s cash reserves and support the restructuring, according to court documents.
Stein received a monthly consulting fee of $100,000 and a success bonus of $1.25 million when he was named chief restructuring officer for bankrupt financial services firm GWG Holdings Inc., according to a SEC filing from 2022.
Oh the poor baby, only getting $1.2 million a year on top of a $1.25 million signing bonus.
How is he going to be able to keep his family fed on such a pittance.
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