LG. Philips Displays USA's U.S. Trustee objects to retention bonus and severance plan

By Caroline Salls

Pittsburgh, April 10 - LG. Philips Displays USA, Inc.'s U.S. Trustee objected to the company's request to implement a retention bonus and severance plan, saying the company failed to justify how it will fund the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the objection, the motion does not provide any information on the particulars of the plan.

The U.S. Trustee said the plan payments allegedly are necessary to induce the covered employees to stay with the company "for what potentially could be an extremely short period of time."

Specifically, the objection said LG. Philips' president has already accepted an alternate position, so the only purpose of the plan in this case would be to encourage this individual to remain with the company for a couple of days.

In addition, the trustee noted that the aggregate cost of the plan to the company's estate cannot be calculated, leaving parties in interest with no way to evaluate its impact to the estate or to conduct a cost benefit analyst.

LG. Philips Displays USA, a San Diego-based producer of TV and computer monitor tubes, filed for bankruptcy on March 15. Its Chapter 11 case number is 06-10245.

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