AHP, creditors table exec compensation
BRENTWOOD, Tenn. - American HomePatient won't ask a judge to approve controversial compensation and severance packages for top executives until the home health company's bankruptcy reorganization plan is finalized.
The packages called for about a dozen top executives to be paid anywhere from six months to three years' salary should the company be sold or experience a change of control. Nashville-based American HomePatient filed for Chapter 11 bankruptcy protection on July 31 in an effort to restructure approximately $275 million in debt coming due at the end of this year.
American HomePatient officials defended the packages as necessary inducements for senior executives to join and stay with the struggling company.
The new agreement with the creditors allows the company to pay bonuses it has historically offered to employees and executives. American HomePatient can then seek to have the executives' severance packages reinstated if its business reorganization plan is confirmed, a process the company hopes to complete as early as next March. HME