Aphton requests court OK to defer salary payments pending completion of asset sale

By Caroline Salls

Pittsburgh, June 12 - Aphton Corp. requested court approval to defer salary payments to three employees until after the completion of a sale of substantially all of the company's assets in return for a deferral bonus, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company's official committee of unsecured creditors proposed the deferred salary program to all company employees in light of the company's "substantial liquidity problem."

The full payment to the employees at the sale closing will be $102,416, including $50,250 in bonus payments in excess of regular salary.

If there is no sale, the bonuses will not be awarded, but the employees will be entitled to an administrative claim for their post-bankruptcy salary, according to the filing.

A hearing is scheduled for June 15.

Aphton is a Philadelphia-based biopharmaceutical company. Its Chapter 11 case number is 06-10510.

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