Judge Approves Blockbuster Executive’s Bonuses20 Jul, 2011 By: Erik Gruenwedel
A United States Bankruptcy Court Judge July 20 authorized Blockbuster Inc. to pay lone employee and executive Bruce Lewis no more than $150,000 in bonuses during completion of the rental icon’s bankruptcy process.
Judge Burton Lifland overruled an objection filed by U.S. Trustee Tracy Hope, who claimed Lewis could be entitled to bonus payments of $125,000 for every $10 million that is paid to secured creditors through July 31.
Hope, who works for a unit of the Department of Justice in charge of overseeing dissolutions of publicly held companies, believed Lewis’ bonus program (on top of a base salary of $375,000 without benefits) was overly generous, considering the dearth of funds available to pay creditors, among other concerns.
Blockbuster Inc. in April sold its assets and brand to Dish Network Corp., which now operates Blockbuster LLC, headed by Michael Kelly.
Blockbuster Inc. ended the most recent fiscal period with about $100 million in cash and cash equivalents.