Further illuminating (or perhaps obfuscating is the better word) the myriad twists and turns of business -- in this case a bankrupt company saved from utter liquidation by an even bigger company -- Bruce Lewis, Blockbuster Executive Officer, came forth to claim he's entitled to certain perks and privileges (read: money) as part and parcel of his ongoing work. On Tuesday, a U.S. judge agreed - with one caveat.
Lewis is now free to collect up to $150,000 in bonuses according to Reuters coverage of the hearing. New York Judge Burton Lifland weighed Lewis' request against an objection brought by U.S. Trustee Tracy Hope Davis - who feared possible abuse of the previously uncapped bonus package, says the report. Judge Lifland stated in his ruling that the possibility Lewis could earn an unspecified amount was "the court's main concern."
A day before the hearing took place, Home Media Magazine restated that Hope Davis believed Lewis stood to earn $625,000 (on top of an annual $375,000 wage) if he paid back $50 million to creditors. Lewis' attorneys naturally posited that his important work necessitated such bonuses:
"Mr. Lewis is critical to the wind-down process and is the individual who is best equipped to accomplish it expeditiously, efficiently and, most importantly, economically. The proposed program, which will incentivize him to achieve these goals and maximize funds available for distribution to holders of pre-sale administrative expense claims and secured claims, is fair and reasonable and, as stated, not one objection has been raised by any party with an economic interest in these cases."
Blockbuster has been investigating which stores it should and shouldn't close since its April acquisition by Dish Network. The company launched several promotions this summer to off-set both its financial and legal troubles - most recently taking a shot at competitor Netflix over a 60 percent price increase.
Comments made by Joseph Clayton, Dish CEO, in May hinted at a future for Blockbuster which could include an instant streaming service that rivals Netflix, though he was light on details.
