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Judge OKs exec incentives for AMF restructuring

Wednesday - 1/23/2013, 7:24am  ET

RICHMOND, Va. (AP) - Three top executives of AMF Bowling Worldwide could earn bonuses if they meet certain goals while the bowling center operator restructures.

Virginia-based AMF filed for Chapter 11 bankruptcy in November.

The Richmond Times-Dispatch reports that U.S. Bankruptcy Judge Kevin R. Huennekens approved the incentive plan Tuesday. It covers chief operating officer and chief financial officer Stephen D. Satterwhite, vice president of finance and controller Rachel S. Labrecque, and general counsel Daniel M. McCormack.

The executives could receive a total bonus of up to about $1 million.

Assistant U.S. trustee Robert Van Arsdale questioned the plan's legality. He said federal law restricts retention bonuses for top officers of bankrupt public companies.

The judge said the bonuses are structured more as incentives than a retention program.

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Information from: Richmond Times-Dispatch, http://www.timesdispatch.com


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