Mission Coal looks to pay up to $1.4 million for incentive bonuses

By Caroline Salls

Pittsburgh, Nov. 29 – Mission Coal Co., LLC requested court approval to implement key employee incentive and retention plans, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Alabama.

Mission Coal said the structure and novelty of its business leaves its management team and employees facing uncertainty regarding their post-restructuring employment status and questions regarding who the future owners of their business will be.

In addition, the company said it is thinly staffed and therefore “disproportionately burdened by the loss of any employee.”

As a result, Mission Coal said it developed the proposed KERP, which would provide incentive-based bonuses to 40 critical non-insider employees for a total of $1.12 million, and the proposed KEIP for two senior members of the management team for a total of up to $281,875.

The senior management members who are eligible to receive bonuses under the KEIP are Mission Coal’s general counsel and vice president of human resources and its vice president of accounting.

“The KERP is designed specifically to retain key non-insider employees through the pendency of the Chapter 11 cases,” the motion said. “The KEIP is designed to incentivize two crucial members of the debtors’ management team to achieve challenging sale-related process and pricing goals.”

A hearing is scheduled for Dec. 19.

Mission is a Kingsport, Tenn.-based coal company. The company filed bankruptcy on Oct. 14 under Chapter 11 case number 18-04177.

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