A federal judge has given the OK for Longview Power LLC to create a fund to pay some employees as part of a retention program.
U.S. Bankruptcy Court for the District of Delaware Judge Brendan L. Shannon issued an order Tuesday authorizing the retention program for the organization. The order takes effect immediately.
Earlier this year, Longview Power filed for Chapter 11 bankruptcy. The organization’s main asset is the Longview Power Plant located in Maidsville. Affiliate companies were also included in the bankruptcy filing.
During the process, Longview asked for the OK to create a retention program for certain employees as an incentive for them to stay with the plant during the bankruptcy proceedings. Longview argued that there was a significant risk for employee attrition that could disrupt the business.
The company asked the court to create a pool of $3.7 million for the retention program. In total, 126 employees would be eligible for the program. The average award would be almost $30,000 with a cap at $77,250.
The payments would be made in increments with employees receiving the first 25 percent after six months. The next 25 percent would occur six months after that and the final 50 percent at 18 total months.