Pipeline Health gets approval of key employee retention plan

By Sarah Lizee

Olympia, Wash., Dec. 15 – Pipeline Health System, LLC got approval of a key employee retention plan from the U.S. Bankruptcy Court for the Southern District of Texas, according to an order filed Wednesday.

As previously reported, the plan covers 29 participants, with cash compensation tied to each participant’s base salary.

The aggregate amount of compensation is $1.5 million, broken into a retention payment for each participant of 28% of their base salary.

There are two installments: 30% paid upon entry of the order of the plan and the remaining 70% paid on the effective date of a Chapter 11 plan of reorganization.

The participants, the company asserts, are not “insiders.”

The key employees are essential to maintaining ordinary-course hospital operations during the cases.

Pipeline Health System is an El Segundo, Calif.-based community-focused health care network. It filed bankruptcy on Oct. 2 under Chapter 11 case number 22-90291.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.