On eve of individual bankruptcy, U.S. companies shower execs with bonuses

Published

4 years ago

July 17, 2020

FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Pennsylvania

By Mike Spector and Jessica DiNapoli

(Reuters) – Almost a 3rd of more than 40 big providers seeking U.S. bankruptcy defense in the course of the coronavirus pandemic awarded bonuses to executives within just a thirty day period of filing their situations, in accordance to a Reuters evaluation of securities filings and courtroom data.

Beneath a 2005 personal bankruptcy legislation, organizations are banned, with number of exceptions, from having to pay executives retention bonuses although in personal bankruptcy. But the corporations seized on a loophole by granting payouts before submitting.

6 of the 14 companies that authorised bonuses in a thirty day period of their filings cited enterprise problems executives faced for the duration of the pandemic in justifying the compensation.

Even more firms paid out bonuses in the half-calendar year time period right before their bankruptcies. 30-two of the 45 companies Reuters examined accredited or paid out bonuses inside of 6 months of submitting. Just about half approved payouts inside of two months.

Eight companies, together with J.C. Penney Co Inc and Hertz Global Holdings Inc, authorised bonuses as few as five times in advance of searching for individual bankruptcy protection. Hello-Crush Inc, a provider of sand for oil-and-gasoline fracking, compensated executive bonuses two days right before its July 12 filing.

J.C. Penney – pressured to temporarily near its 846 section shops and furlough about 78,000 of its 85,000 workers as the pandemic spread – authorised almost $10 million in payouts just ahead of its May well 15 filing. On Wednesday, the firm explained it would completely near 152 stores and lay off 1,000 employees.

The organization declined to remark for this story but stated in an earlier statement that the bonuses aimed to keep a “talented management team” that experienced built development on a turnaround just before the pandemic.

The other organizations declined to remark or did not reply. In filings, quite a few explained financial turmoil experienced rendered traditional payment designs obsolete or that executives finding bonuses experienced forfeited other compensation.

Luxury retailer Neiman Marcus Team in March quickly closed all of its 67 stores and in April furloughed far more than 11,000 personnel. The corporation paid $4 million in bonuses to Chairman and Chief Executive Geoffroy van Raemdonck in February and extra than $4 million to other executives in the months right before its Could 7 individual bankruptcy filing, court docket information exhibit. Neiman Marcus drew scrutiny this week on a prepare it proposed following filing for personal bankruptcy to shell out further bonuses to executives. The corporation declined to comment.

Hertz – which not long ago terminated more than 14,000 workers – paid out senior executives bonuses of $1.5 million days before its Could 22 bankruptcy, in portion to recognize the uncertainty they faced from the pandemic’s influence on journey, the business explained in a filing.

Whiting Petroleum Corp bestowed $14.6 million in further compensation to executives days prior to its April 1 bankruptcy. Shale pioneer Chesapeake Strength Corp awarded $25 million to executives and lower-stage workforce in May possibly, about eight weeks prior to filing bankruptcy. The two cited fallout from the pandemic and a Saudi-Russian oil price tag war, which they claimed rendered their incentive plans ineffective.

Reuters reviewed economical disclosures and court docket information from 45 organizations that filed for personal bankruptcy in between March 11, the working day the Globe Wellness Corporation declared COVID-19 a pandemic, and July 15. Working with a databases presented by BankruptcyData, a division of New Era Analysis Inc, Reuters reviewed corporations with publicly trade inventory or credit card debt and much more than $50 million in liabilities.

These kinds of bonuses have prolonged spurred objections that businesses are enriching executives when slicing jobs, stiffing lenders and wiping out inventory traders. In March, collectors sued previous Toys ‘R’ Us executives and directors, accusing them of misdeeds that bundled spending administration bonuses days in advance of its 2017 individual bankruptcy. The retailer liquidated in 2018, terminating far more than 31,000 men and women.

A lawyer for the executives and directors reported the bonuses were being justified, given the extra do the job and tension on management, and that Toys ‘R’ Us had hoped to continue to be in business soon after restructuring.

In June, congressional Democrats responded to the pandemic-induced wave of bankruptcies by introducing legislation that would improve creditors’ rights to claw again bonuses. The bill – the hottest iteration of a proposal that has very long unsuccessful to get traction – faces slender prospective buyers in a Republican-controlled Senate, a Democratic aide reported.

Companies paying out pre-bankruptcy bonuses know they would experience scrutiny in court docket on compensation proposed soon after their filings, reported Clifford J. White III, director of the U.S. Trustee System, a Justice Section division charged with monitoring bankruptcy proceedings. But the trustees have no electricity to halt bonuses paid out even days ahead of a company’s individual bankruptcy filing, he said, enabling firms to “escape the transparency and courtroom critique.”

DODGING Reward Limitations

The 2005 laws expected executives and other company insiders to have a competing work offer in hand ahead of getting retention bonuses for the duration of personal bankruptcy, among other constraints. That compelled failing companies to devise new techniques to pay out the bonuses, according to some restructuring industry experts.

Soon after the 2008 economic crisis, providers usually proposed bonuses in personal bankruptcy court, casting them as incentive options with aims executives have to satisfy. Judges generally authorized the plans, ruling that the efficiency benchmarks set the compensation beyond the purview of the limitations on retention bonuses. The plans, however, sparked objections from Justice Department displays who known as them retention bonuses in disguise, frequently with effortless milestones.

Eventually, organizations identified they could steer clear of scrutiny completely by approving bonuses in advance of individual bankruptcy filings. Dozens of organizations have authorised these payouts in the very last 5 a long time, said Brian Cumberland, an government payment skilled at consulting firm Alvarez & Marsal who advises organizations going through economical restructurings.

Providers argue the bonuses are important to retaining executives whose departures could torpedo their businesses, in the long run leaving much less funds for collectors and workforce. Now, some providers are bolstering those people arguments by contending that their company would not have cratered without having the economic turmoil of the pandemic.

The pre-individual bankruptcy payouts are required, businesses say, mainly because possible inventory awards are worthless and it would be unachievable for executives to meet business enterprise targets that had been crafted right before the economic crisis. The bonuses guarantee stability in leadership that is needed to keep faltering functions collectively, the companies contend.

Some experts argue the bonuses are hard to justify for executives who may possibly have several far better job possibilities in an economic disaster.

“With double-digit unemployment, it is a weird time to be spending out retention bonuses,” stated Adam Levitin, a professor specializing in individual bankruptcy at Georgetown University’s law university.

Shut Retailers, Major BONUSES

J.C. Penney has not posted an once-a-year earnings given that 2010 as it has struggled to grapple with the shift to on the net procuring and opposition from price reduction vendors. The 118-year-aged chain, at several points, utilized extra than 200,000 people and operated 1,600 retailers, figures that have considering the fact that been slice much more than fifty percent.

On May possibly 10, J.C. Penney’s board permitted compensation variations that paid out leading executives, like CEO Jill Soltau, virtually $10 million. On May possibly 13, Soltau gained a $1.7 million extended-term incentive payment and a $4.5 million retention reward, court docket filings display.

The once-a-year pay of the company’s median personnel, a element-time hourly worker, was $11,482 in 2019, a firm filing shows.

J.C. Penney submitted for individual bankruptcy two days immediately after spending Soltau’s bonuses. At a hearing the future working day, a creditors’ lawyer argued the payouts were made to thwart courtroom evaluation. The payouts have been timed “so that they did not have to put it in entrance of you,” explained the lawyer, Kristopher Hansen, addressing U.S. Bankruptcy Choose David Jones.

Jones – who is also overseeing the Whiting Petroleum, Chesapeake Strength and Neiman Marcus scenarios – advised Reuters that these types of bonuses are “always a concern” in bankruptcy situations. “That said, the adversarial procedure requires that get-togethers place the issue just before me in advance of I can consider motion,” he extra, emphasizing he was speaking of typical dynamics applicable to any circumstance. “A comment created in passing by a law firm is not adequate.”

In its assertion earlier this 12 months, J.C. Penney reported the bonuses were being amid a collection of “tough, prudent decisions” taken to safeguard the firm’s upcoming.

Dennis Marten – a shareholder who stated he after worked at a J.C. Penney retail store – disagrees. He has appeared at courtroom hearings pleading for an investigation of the company’s management.

“Shame on her for possessing the gall to get that funds,” he claimed of Soltau.

(Reporting by Mike Spector and Jessica DiNapoli Enhancing by Brian Thevenot)

All Your Acrylic Nail Questions Answered: From Application to Care

Published

2 months ago

October 16, 2024

Herb Adkins

Acrylic nails are a popular choice for those looking to add length, strength, and style to their natural nails. Whether you’re new to the world of acrylics or a seasoned nail enthusiast, there are always questions that arise about the application, maintenance, and overall care of these enhancements. This guide will answer all your acrylic nail questions to ensure your next manicure is a complete success.

What Are Acrylic Nails?

Acrylic nails are artificial nail enhancements made from a mixture of liquid monomer and powder polymer. When combined, they form a hard protective layer that can be molded into various shapes and lengths. Once hardened, they provide a durable and long-lasting canvas for nail polish, art, or simply a natural look. For more in-depth information, check out Acrylic Nail FAQs to get all the details you need before your next salon visit.

How Are Acrylic Nails Applied?

The application process of acrylic nails begins with the preparation of your natural nails. The nail technician will clean your nails, file them down, and apply a bonding agent to help the acrylic adhere. The acrylic mixture is then applied in thin layers, sculpted to the desired shape, and allowed to dry. Once set, the nails are filed, shaped, and buffed to a smooth finish.

Acrylic nails can be customized in terms of length and shape, making them a versatile choice for anyone looking to enhance their look.

How Long Do Acrylic Nails Last?

Typically, acrylic nails can last anywhere from two to three weeks before requiring a fill. During a fill, the nail technician will replace any grown-out acrylic and maintain the structure of the nails. With proper care, acrylic nails can be worn for extended periods, but it’s essential to give your natural nails a break occasionally to maintain nail health.

How Do You Care for Acrylic Nails?

Caring for acrylic nails is crucial to ensuring they last as long as possible and that your natural nails remain healthy underneath. Here are some essential tips:

Avoid excessive water exposure: Prolonged exposure to water can weaken acrylic nails, making them prone to lifting or damage. When washing dishes or cleaning, consider wearing gloves to protect your nails.
Moisturize cuticles regularly: The acrylic application process can sometimes dry out your cuticles. Regularly apply cuticle oil to keep your cuticles hydrated and prevent hangnails.
Be gentle with your nails: Acrylics can be strong, but they’re not indestructible. Avoid using your nails as tools to open packages or scrape things, as this can lead to breakage.
Schedule regular fills: As your natural nails grow, gaps will appear between the acrylic and your cuticles. Regular fills ensure your nails maintain a smooth, polished look and help prevent lifting.

How Do You Remove Acrylic Nails Safely?

Proper removal is crucial to avoid damaging your natural nails. It’s highly recommended to have acrylics removed by a professional at the salon. However, if you prefer to remove them at home, follow these steps:

Soak in acetone: Start by soaking a cotton ball in acetone, then place it on each nail. Wrap your fingers in aluminum foil and allow the acetone to work for about 20 minutes.
Gently scrape off the acrylic: After soaking, use a cuticle pusher or an orange stick to gently scrape off the softened acrylic. Be patient and avoid forcing the acrylic off, as this can damage your natural nails.
Buff and moisturize: Once the acrylic is completely removed, buff your natural nails to smooth out any rough spots and apply cuticle oil to restore moisture.

Are Acrylic Nails Safe for Your Natural Nails?

When applied and removed properly, acrylic nails should not cause significant damage to your natural nails. However, improper removal or overuse without giving your nails time to breathe can lead to thinning, weakening, or breakage of your natural nails.

If you plan on wearing acrylic nails long-term, it’s a good idea to take breaks between applications and ensure you’re nourishing your nails with oils and treatments.

What Are the Best Acrylic Nail Shapes?

Choosing the right nail shape is essential for creating a look that complements your hands. Some of the most popular acrylic nail shapes include:

– Square: A straight-edged, classic look perfect for shorter nails.

– Oval: A soft, rounded shape that elongates the fingers.

– Coffin: Also known as ballerina shape, this trendy look features a tapered edge with a flat tip.

– Stiletto: A dramatic, pointy shape ideal for those who want a bold statement.

Each shape offers a unique aesthetic and can be tailored to suit your personal style.

Are There Any Alternatives to Acrylic Nails?

If you’re looking for a different type of nail enhancement, consider these alternatives:

– Gel nails: Gel nails offer a glossy finish and are cured under UV or LED light. They’re less rigid than acrylics and can feel more natural.

– Dip powder: This method involves dipping the nails into a colored powder and sealing them with a clear coat. It provides a similar look to acrylics but is generally less damaging to the natural nails.

Conclusion

Acrylic nails are a versatile and durable option for achieving customized, beautiful nails. By understanding the application process, knowing how to care for them, and safely removing them, you can enjoy long-lasting manicures that enhance your style. With the ability to choose from a variety of shapes and designs, acrylic nails offer endless possibilities for self-expression. Remember to take care of your natural nails in between applications to keep them healthy and strong. Whether you’re a first-time user or a seasoned pro, acrylic nails can be a fantastic way to express your personality and keep your nails looking flawless for weeks.

Jacqueline Troost Omvlee – A Tool in the Hands of the Russian Elite

Published

3 months ago

September 26, 2024

Herb Adkins

When sanctions were imposed on Russia for its war against Ukraine, their objectives were twofold: to reduce Russian military capacity by limiting modern weapons and to lower Russian revenue streams. While in the beginning, the sanctions indeed weakened the Russian economy, they have fallen short of their initial objectives – mostly because Russia has found ways to circumvent many of them. The Kremlin has exploited international corruption, relied on foreign third parties, and utilized loopholes in trade restrictions. One such individual who allegedly provides services to Russian-linked companies is Jacqueline Troost Omvlee, a Geneva-based Dutch citizen.

Jacqueline Troost Omvlee is married to Niels Troost, an oil trader sanctioned by the United Kingdom. He and his company, Paramount Energy & Commodities SA, are among the 50 individuals and organizations blacklisted in response to the business connections with Russia. His wife, Jacqueline, helps to facilitate financial transactions for Niles Troost and Russian oligarchs including Gennady Timchenko, a Russian billionaire oil trader and Putin`s close associate.

Gennady Timchenko and his family have been sanctioned in many countries for backing the Kremlin’s war machine. However, with the help of Jacqueline Troost Omvlee, he seems to find ways to evade sanctions and continue his financial operations. In these illegal schemes, individuals like Jacqueline often serve as a front person for sanctioned oligarchs and their business assets. Russian-linked companies set up subsidiaries around the world, often registering new entities in offshore havens or countries where regulations are relatively lax or non-existent. To obfuscate the arrangements, the daughter companies spawn offspring in the form of subsidiaries, as the chain of concealment stretches on and on. The result is like a giant Matryoshka doll.

Jacqueline’s involvement in financial transactions that potentially support Timchenko’s interests raises significant concerns about the efficacy of Western sanctions. The fact that Jacqueline Troost Omvlee continues to operate without facing sanctions herself highlights a significant loophole in the enforcement mechanism. Various shady schemes and tactics designed to circumvent sanctions often hide the activity of individuals such as Jacqueline, making it difficult for authorities to detect and punish them for their involvement.

Jacqueline Troost Omvlee’s role in her husband’s financial dealings as well as her alleged ties to Russian business schemes, emphasizes the need for stronger international sanctions. Her actions not only aid in sanctions evasion but also diminish the overall effectiveness of the measures designed to isolate and pressure those supporting the Russian regime. Therefore, sanctioning Jacqueline Troost Omvlee is not only a matter of addressing her individual actions but also a necessary step to reinforce the credibility and effectiveness of the sanctions regime. By targeting individuals who play a key role in evading sanctions, authorities can send a strong message that efforts to undermine international sanctions will not go unpunished. This measure is crucial for maintaining the integrity of the sanctions system and ensuring that it achieves its intended goal of isolating and restraining those who support destabilizing activities.

European countries and the US need to expand their sanctions-tracking and investigative actions to improve the monitoring of sanctions compliance and to introduce new measures against systematic violators of law. The sanctioning states have the resources and capacity for this, and need to take action now.

Hermann’s Tortoise Lifespan: How to Ensure a Long, Healthy Life

Published

3 months ago

September 16, 2024

Herb Adkins

Ensuring a long and healthy life for your Hermann’s Tortoise requires a combination of proper care, nutrition, and habitat management. Hermann’s Tortoises, known for their charming personalities and distinctive shells, can live for several decades with the right conditions. Understanding their needs and providing a suitable environment is key to helping them thrive. Here’s how you can support your Hermann’s Tortoise in living a long, happy life.

Creating an Optimal Habitat

One of the most critical factors in promoting the longevity of your Hermann’s Tortoise is the creation of a suitable habitat. Providing an environment that mimics their natural surroundings is essential for their overall health. An appropriate habitat helps prevent stress and supports their well-being. For detailed guidance on setting up an ideal habitat, including specific requirements for outdoor enclosures, visit this comprehensive guide on Habitat for Hermann’s Tortoise.

Outdoor Enclosure: Hermann’s Tortoises thrive in outdoor enclosures that provide ample space to roam, bask, and forage. An outdoor setup should include a secure, predator-proof area with access to natural sunlight. Incorporate areas for basking and shade to allow the tortoise to regulate its body temperature. Additionally, include plants, rocks, and hiding spots to simulate their natural habitat and encourage natural behaviors.
Indoor Habitat: If an outdoor enclosure is not feasible, an indoor habitat can also support a long lifespan if set up correctly. Use a large, well-ventilated enclosure with appropriate heating and UVB lighting. Provide a substrate that allows for burrowing and offer various hiding spots and enrichment items.

Diet and Nutrition

A balanced diet is vital for maintaining the health and longevity of your Hermann’s Tortoise. They are primarily herbivores, and their diet should reflect their natural feeding habits.

Leafy Greens: Offer a variety of leafy greens such as kale, collard greens, and dandelion greens. These vegetables provide essential vitamins and minerals that support overall health.
Vegetables and Fruits: Supplement their diet with other vegetables like carrots, squash, and bell peppers. Fruits should be given in moderation due to their high sugar content.
Calcium and Supplements: Provide a calcium supplement to support shell and bone health. A cuttlebone or powdered calcium can be added to their food. Ensure that they also have access to fresh, clean water at all times.

Regular Health Checks

Routine health checks are essential for early detection of potential health issues. Regular veterinary visits help ensure your tortoise remains in optimal condition and addresses any health concerns promptly.

Observation: Monitor your tortoise’s behavior and physical condition regularly. Changes in appetite, weight, or activity level can indicate health problems.
Preventative Care: Schedule annual check-ups with a veterinarian experienced in reptile care. Regular exams help catch any issues early and keep vaccinations and other preventative treatments up to date.

Environmental Enrichment

Providing environmental enrichment helps keep your Hermann’s Tortoise mentally stimulated and active. Enrichment can reduce stress and prevent boredom, contributing to a better quality of life.

Foraging Opportunities: Hide food items around the enclosure to encourage natural foraging behavior. This not only provides mental stimulation but also mimics their natural hunting practices.
Variety: Change the layout of their enclosure periodically and introduce new objects or plants to keep their environment interesting and engaging.

Conclusion

By focusing on creating the right habitat, providing a balanced diet, ensuring regular health checks, and offering environmental enrichment, you can significantly enhance the lifespan and well-being of your Hermann’s Tortoise. For further details on creating an ideal habitat, including tips for designing an outdoor enclosure, refer to this helpful guide on Habitat for Hermann’s Tortoise. Implementing these practices will help ensure that your tortoise enjoys a long, healthy life.