SUN BANKRUPTCY NEWS: Extension of employment arrangements with CFO
This excerpt from the April 25, 2001, issue of Sun Healthcare Bankruptcy News outlines future employment arrangements with Robert Woltil.
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Robert D. Woltil has served as Chief Financial Officer of the company since February 1996.
As stated in a stipulation presented to the Court for approval, in or about October 1999, Mr. Woltil advised Sun Healthcare Group, Inc. that he had received an offer of employment from another entity that he was interested in accepting. At the request of the company, the stipulation says, Mr. Woltil agreed to reject that offer and commit to remain with the company until December 31, 2000. In exchange, the company agreed that if Mr. Woltil voluntarily terminated his employment with on or upon December 31, 2000, the company would make a payment to him equal to 12 months of his then current salary.
Shortly after that, on December 15, 1999, the Court approved a retention program for key employees of the company including the Voluntary Severance Payment concerning Mr. Woltil.
The Debtors and Mr. Woltil stipulate that both sides now wish to defer Mr. Woltil's receipt of the Voluntary Severance Payment and continue Mr. Woltil's employment with the company pursuant to the terms of a letter agreement.
Among other things, the letter provides that the Voluntary Severance Payment will be deferred "unless and until the earlier of: (a) 30 days after the effective date of a chapter 11 plan of reorganization for the company or (b) 30 days after he gives written notice to the company of the occurrence of a Termination Event." The letter also says that Mr. Woltil is "entitled to the benefits for key employees specified in the Retention Program, provided that, in no event will [he] be entitled to receive both the Voluntary Severance Payment and any severance payments provided under the Retention Program."
Representatives of the Committee and the company's prepetition bank lenders have been presented with the terms of Mr. Woltil's continued employment with the company and have raised no objections, the stipulation says.
Judge Walrath has given her stamp of approval to the stipulation.
Reprinted with permission from Sun Healthcare Bankruptcy News. Copyright 2001 Bankruptcy Creditors' Service, Inc. For additional information or to subscribe to Sun Healthcare Bankruptcy News, contact Peter A. Chapman at peter@bankrupt.com or 609-392-0900.