Vicorp asks for court approval to hire Hazem Ouf as chief restructuring officer

By Jennifer Lanning Drey

Portland, Ore., May 27 - Vicorp Restaurants Inc. requested court approval to hire Hazem Ouf as president and chief restructuring officer, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Upon court approval, Ouf would succeed Kenneth L. Keymer, who is scheduled to retire from his positions of chief executive officer of Vicorp and president and treasurer of its parent, VI Acquisition Corp., on May 29.

Under the employment agreement, Ouf would receive a base salary of $725,000 per year and be eligible to receive bonuses of up to 100% of his salary based on performance, which would be measured through adjusted EBITDA targets.

Ouf would also be eligible to receive a time-based success fee that would compensate him an additional $250,000 if a plan of reorganization supported by the company's committee of unsecured creditors is confirmed prior to Oct. 31, 2008. The fee would decrease by $75,000 at the first of each successive month and would be eliminated if a plan is not confirmed by Dec. 31, 2008.

Ouf would also receive a recovery-based success fee of between $150,000 and $450,000 if the trading value or fair market value of the proceeds or capital structure securities of the reorganized Vicorp is equal to or greater than $128 million at 90 days after the effective date of a plan of reorganization.

A hearing is scheduled for June 17.

Vicorp is a Denver-based restaurant operator. Its Chapter 11 case number is 08-10623.

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