Cumberland Times-News

Local News

December 19, 2011

Judge OKs NewPage executive bonuses

CUMBERLAND — A federal bankruptcy judge in Delaware has approved a bonus plan worth $1.5 million for 15 NewPage company executives.

Meanwhile, contractors and suppliers from large companies to mom and pop operations hope they’ll be able to recoup money owed by NewPage for services and supplies already rendered. Most of them have received nothing during the bankruptcy proceedings so far. NewPage owns the Luke paper mill. The plant employs 870 people. A listing of those creditors for the Luke plant alone takes up several tightly printed pages in court documents.

One of those contractors who contacted the Times-News was disgusted.

“Well, maybe in a year or so I might receive a few cents on the dollar. But instead of paying the people they owe money to, they are going to offer bonuses to the top executives. ... Stiff the little guys and give bonuses to the executives while you’re at it,” he wrote.

The contractors are owed anything from a few hundred to tens of thousands of dollars and more.

Federal Bankruptcy Judge Kevin Gross issued the order Dec. 13 in Wilmington, Del. The judge has not yet decided on the long-term incentive plan.

“...and any objection to the STIP (Short Term Incentive Plan) motion having been withdrawn or overruled; and the court having found and determined that the relief sought in the STIP motion is on the best interests of the debtors, their estates and creditors, and all parties in interest. ... Ordered that the STIP is approved in its entirety,” the order reads.

NewPage filed documents requesting court approval for the payments in the U.S. Bankruptcy Court for the District of Delaware on Nov. 22.

The company has also asked to seal many of the documents it plans to file in support of the request, which the company claims contain personal information about the executives and company information that should be protected from public release.

“If such information were made publicly available, the disclosure would significantly harm the debtors’ operations and the stability of their work force,” the company states in a court document.

According to documents filed with the bankruptcy court, the short-term incentive program will equal about $100,000 per executive, or just more than $200,000 if the 2011 and 2012 incentives are approved.

To qualify, the executives will need to meet a performance standard. The payouts would equal 40 percent to 150 percent of base salary, according to a presentation filed with the bankruptcy court as an exhibit.

A list of the officers who could earn the incentive includes George F. Martin, the president and chief executive officer of the company, and several senior vice presidents, one of whom holds the title vice president, sustainable profitability.

“The ... participants play a pivotal role in driving the debtors’ financial and operating performance and their ability to successfully restructure,” according to the company’s court filing.

The executives “have dedicated themselves to maximizing value ... by providing exceptional service under extreme conditions and exigent circumstances, far beyond the ordinary call of duty.”

Bankruptcy court documents may be found at: http:// www.kccllc.net/newpage.

Contact Matthew Bieniek at mbieniek@times-news.com.

1
Text Only
Local News
  • 43-year-old receives prison time for molesting his niece

    CUMBERLAND — A 43-year-old city man was sentenced Wednesday to a 10-year prison term for the sexual assault of a 5-year-old girl, according to the Office of the State’s Attorney for Allegany County.

    April 24, 2014

  • House of cards House of cards

    Sixth-graders James Patalinghug, left, and Nina Cutter build a multilevel tower out of index cards Tuesday afternoon at Washington Middle School. The activity was part of a science, technology, engineering, math, known as STEM, lesson designed to teach students about load distribution, friction and gravity.
     

    April 23, 2014 1 Photo

  • CORY ORNDORFF Green Spring man sentenced to 40 years for toddler’s death

    ROMNEY, W.Va. — Hampshire County Circuit Court Judge H. Charles Carl III sentenced 22-year-old Cory A. Orndorff of Green Spring to 40 years in prison for one count of child abuse resulting in the death of an 18-month-old child Wednesday morning.

    April 23, 2014 1 Photo

  • Glen Bell, a public information officer 900-acre Bear Den wildfire 70 percent contained

    CENTERVILLE, Pa. — A 900-acre wildfire on Wills Mountain in Bedford County was said Wednesday to be “the largest fire in Pennsylvania this spring season,” according to Cecile Stelter, Pennsylvania Bureau of Forestry public information officer.
    The fire that was reportedly situated mostly on state game lands began Saturday at about 2 p.m., with initial firefighting efforts handled by the Cumberland Valley Township Volunteer Fire Department at Centerville.

    April 23, 2014 1 Photo

  • System to provide firefighters quick access could be required in new Mineral businesses

    KEYSER, W.Va. — The Mineral County Commission agreed to look into the possibility of implementing an ordinance that would require new commercial businesses to install a KNOX-BOX Rapid Entry System.

    April 23, 2014

  • Puff & Stuff owners agree to settlement over claims they sold synthetic drugs

    CUMBERLAND — Charles and Traci Casey, owners of Puff & Stuff stores in Cumberland and LaVale, have agreed to forfeit $173,988.61, to settle claims that they sold synthetic drugs at their stores.

    April 23, 2014

  • Mall maulers

    Chad Trail, Rick Ryan, Mike Lawrence and Rusty Pyles, Cumberland Street Department employees, work on replacing the concrete strips that run between the bricks on the Downtown Cumberland Mall between Centre and Liberty streets.

    April 23, 2014

  • CHARLES  SEVERANCE W.Va. judge orders Severance extradited to Virginia

    WHEELING, W.Va. (AP) — A man wanted for questioning in relation to three unsolved slayings in Alexandria, Va., in the past decade should be extradited to Virginia on an unrelated weapons charge, a West Virginia judge ruled Wednesday.

    April 23, 2014 1 Photo

  • Keyser man faces charges in Easter incident

    KEYSER, W.Va. — Mineral County Prosecuting Attorney Jay Courrier is faced with deciding whether to charge a Keyser man with disturbing a religious worship.

    April 23, 2014

  • 43-year-old receives prison time for molesting his niece

    CUMBERLAND — A 43-year-old city man was sentenced Wednesday to a 10-year prison term for the sexual assault of a 5-year-old girl, according to the Office of the State’s Attorney for Allegany County.

    April 23, 2014