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Judge OKs Bonuses for Furniture Brands Execs
October 14,
2013 by in Bankruptcy, Industry 
A U.S. Bankruptcy Court judge brushed aside objections Friday to paying bonuses to seven Furniture Brands International executives but capped the total possible payments at $3.5 million.
Furniture Brands proposed bonuses based on the sale price of the company's assets that could have totaled an amount greater than $3.5 million.
The names of the seven executives and the amounts they would be paid after the bankruptcy case ends were ordered kept sealed. The cause is expected to be wrapped up in December.
The U.S. bankruptcy trustee for Furniture Brands' case, a Justice Department employee serving as a watchdog on proceedings, filed an objection Wednesday saying the proposal's goals were too easy to reach and that company executives who had drawn healthy bonuses even as the company swirled down into bankruptcy, the pension fund was left $200 million short and benefits for retirees were cut did not deserve further bonuses. Industry analyst Budd Bugatch also had filed an objection, noting the company's history of setting low goals to pay bonuses as the company lost money for years.
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