AMF Bowling Executives Seek $1 Million in Bonuses
Stock Chart for AMF Bowling Inc (AMBWQ)
AMF Bowling Worldwide Inc., the world’s largest bowling-alley operator, asked a bankruptcy judge for permission to pay as much as $1.03 million in bonuses to three executives after the company is sold or reorganized.
Chief Financial Officer Stephen Satterwhite would receive as much as 150 percent of his annual salary if AMF’s earnings exceed expectations or a buyer pays more than $350 million, according to papers filed Dec. 28 in U.S. Bankruptcy Court in Richmond, Virginia.
Controller Rachel Labrecque and General Counsel Daniel McCormack also would share in the bonus pool. The payments are needed “to meet numerous challenging performance goals” and the only probable opponents are unsecured creditors, AMF said.
AMF in November filed for court protection for the second time in 11 years, seeking to implement a restructuring agreement reached with holders of most of its $216 million in first-lien debt and iStar Financial Inc. (SFI), the landlord for most of its bowling centers. The restructuring is subject to competing offers through a court-supervised auction.
In addition to the executives, AMF plans to pay as much as $140,000 to six non-insider employees to keep them at the company during the bankruptcy case, according to court papers. AMF asked U.S. Bankruptcy Judge Kevin Huennekens to hold a hearing Jan. 17 on the two bonus plans.
The company, based in Mechanicsville, Virginia, runs about 300 bowling centers with more than 20 million visitors a year, according to its website. AMF previously filed to reorganize in July 2001 and exited with a confirmed Chapter 11 plan in February 2002 by giving unsecured creditors 7.5 percent of the new stock.
The case is In re AMF Bowling Worldwide Inc., 12-36495, U.S. Bankruptcy Court, Eastern District of Virginia (Richmond).
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