A Texas bankruptcy judge on Thursday approved iHeartMedia Inc.’s requests to fund its Chapter 11 restructuring with a new $450 million revolving credit facility and pay its non-insider employees an aggregate of up to $66 million in bonuses to encourage peak performance.
The bankrupt media giant got the go-ahead to implement a 2018 incentive plan for 714 employees who don’t hold senior executive roles after an uncontested hearing Thursday in front of U.S. Bankruptcy Judge Marvin Isgur.
In a separate filing, Judge Isgur granted a motion that authorizes and approves iHeartMedia’s 2018 Debtors’ Incentive Plans. These are for “non-insiders,” and was designed to encourage iHeart staff to remain in their positions during the bankruptcy reorganization process.
The company sought approval for two employee incentive plans: the 2018 Incentive Plan for Insiders (IPI) and the 2018 Incentive Plan for Non-Insiders (IPN).
Under the 2018 Incentive Plan for Insiders, 11 senior executives would receive up to $24.9 million. Chairman and CEO Bob Pittman would receive up to $10.5 million. President, Chief Operating Officer, and Chief Financial Officer Richard J. Bressler would receive just under $6 million. Executive Vice President and General Counsel Robert Wells would receive up to $1.01 million. Eight unnamed executives would receive up to $7.5 million.