A&P in a document filed in U.S. Bankruptcy Court late Wednesday detailed $12.6 million in payments for top executives and other insiders in the year leading to its Chapter 11 bankruptcy — monies that creditors may seek to “claw back” in the case.
A&P, which filed for bankruptcy protection in July and is currently in the process of selling off all of its stores, has previously disclosed that it made payments to certain executives but didn’t name them until filing a statement of financial affairs Wednesday.
The document reveals that company chairman Gregory Mays received around $4.6 million in bonuses and consulting fees, including a $2.5 million payment from a trust established for its top executives in early April. Paul Hertz, CEO, and Christopher McGarry, A&P’s chief restructuring officer, each received $1.5 million trust payments and each was paid $225,000 as a 2014 bonus.
The documents also detailed payments for salaries, car allowances, vacations and other expenses for current and former officers and directors including Timothy Carnahan, Brian Fitzpatrick, Lou Giraudo, Eric Kanterman, Nirup Krishnamurthy, Terrence Wallock, and consulting firms headed by Mays, Giraudo and Wallock.
Creditors and employees affected by the bankruptcy including union workers have raised the issue of executive payments while the company has sought to alter or reject obligations under its collective bargaining agreements as part of its plan to recover funds for the estate. Sources told SN parties could seek to “claw back” some of those funds in the case.
|Suggested Categories||More from Supermarket News|