Balmoral, Maywood look to pay retention bonuses to two key employees

By Caroline Salls

Pittsburgh, Jan. 9 – Balmoral Racing Club, Inc. requested court approval to pay bonuses under a key employee retention plan for two non-insider employees, according to a Jan. 8 filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The company said Mike Belmonte is in charge of the financial and/or day-to-day operations at Balmoral and Paul J. Svendsen at the Maywood Park Trotting Association, Inc. debtor.

The retention bonus proposed to be paid to Belmonte will be based on an annual negotiated amount of $117,000, and the proposed retention bonus payment to Svendsen will be based on his annual base salary of $98,000.

The Balmoral debtors said they are looking to enter into a retention bonus arrangement with each of the two employees under which 3½% of the annual amounts will be accumulated for payment upon the expiration of the employment period for each fully completed month of service.

Specifically, Belmonte’s and Svendsen’s retention bonus payments will be payable upon the expiration of their employment periods at the monthly rate of $4,095 and $3,430, respectively.

“Should either or both of the key employees leave at this time, it will severely and negatively impact the debtors’ ability to operate as well as their ability to maximize the value of the debtors’ assets and businesses for the benefit of all creditors and other interested parties,” the motion said.

A hearing is scheduled for Jan. 13.

Balmoral is a Crete, Ill.-based racetrack operator. The company filed for bankruptcy on Dec. 24 under Chapter 11 case number 14-45711.

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