(Updates with court filing in second paragraph.)
Aug. 30 (Bloomberg) -- Tribune Co., the owner of the Los Angeles Times and the Chicago Tribune, sought approval from a bankruptcy judge to pay as much as $42.5 million to 640 managers as part of an incentive plan.
The 2011 plan would pay managers $16.4 million if Tribune reaches the “threshold” performance of 91 percent of its planned consolidated operating cash flow, Tribune said in a filing today in U.S. Bankruptcy Court in Wilmington, Delaware. The payout is $32.4 million with a “target” performance of 109 percent of planned cash flow and $42.5 million if 141 percent is reached.
Approval of the plan, which is similar to plans approved in previous years, is “critically important” to maintain incentives for the management team, according to the filing by the Chicago-based company.
The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--Editors: Michael Hytha, Joe Schneider
To contact the reporter on this story: Edvard Pettersson in Los Angeles at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Hytha at email@example.com