By  on September 18, 2019

Barneys New York faces the uphill challenge of securing a buyer by late October in a hostile retail market. But a New York bankruptcy court ruled on Wednesday that if the retailer accomplishes its coveted going concern sale, its two top executives could see a bonus payday of roughly around $1 million or more.  

U.S. Bankruptcy Judge Cecelia Morris approved Barneys’ proposed incentive plan to reward chief executive officer Daniella Vitale and chief financial officer Sandro Risi if they accomplish a sale at a higher price than a minimum “floor value,” an amount that would include the costs of secured debt, as well as administrative and priority claims. The retailer’s chief restructuring officer Mohsin Meghji testified to the court Wednesday that the floor value is currently estimated at around $220 million, a figure that includes some $195 million in secured debt and roughly $25 million in administrative and priority claims. 

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