Williams Industrial’s employee plans draw committee objection

By Sarah Lizee

Olympia, Wash., Sept. 5 – Williams Industrial Services Group Inc.’s proposed key employee retention plan and key employee incentive plan drew an objection from the official committee of unsecured creditors, according to documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The committee said the proposed payments, totaling $375,000, are being made to insiders and employees who may be employed by the debtors for as little as one day after approval of the motion and are receiving bonuses for “just doing their jobs, nothing more.”

“The employee compensation plans neither incentivize insiders, nor promote retention of rank-and-file employees, but instead reward all of these individuals for past performance,” the group said in the objection.

The committee added that any amounts paid under the employee compensation plans reduce, on a dollar-for-dollar basis, the amount that would otherwise be preserved for the benefit of general unsecured creditors under a debtor-in-possession financing settlement between the committee and the DIP term lenders.

The U.S. trustee overseeing the case has also filed an objection to the KEIP, as previously reported.

Atlanta-based Williams Industrial Services is a provider of infrastructure related services to blue-chip customers in energy and industrial end markets. The company filed bankruptcy on July 20 under Chapter 11 case number 23-10961.

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