Vertis: Third Chapter 11 in Just Five Years –Michelson

I’m no bankruptcy lawyer or Wall Street banker, but it doesn’t make sense that our legal system and bankruptcy laws can allow one company to reorganize and shed its commitments three times in five years. Unfortunately, each time, the current crop of senior execs in charge—with none of their life savings or years of sweat equity on the line—just float off into the sunset, golden parachutes held tightly in hand, while the rank-and-file workers and mid-level managers face job uncertainty. That’s not the land of opportunity our American forefathers envisioned.

Mark T. Michelson

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Comments
  • KHJ

    What is jaw-dropping are the salaries, raises, retention pay, bonuses and absurd legal fees incurred (multi millions) in the months before the filing (see SOFA 3 after pg. 684 and SOFA 9 http://www.kccllc.net/documents/1212821/1212821121117000000000004.pdf). How can any sane/ethical leader/ethical justify paying himself and his executive staff 2x’s their salary just to stay when they all knew the endgame? Additionally, how can he reward anyone on the executive team for performance? The company was going broke! It’s unfathomable how our court system can allow this behavior to continue. Hundreds of millions of dollars are owed to legitimate creditors, yet the "executives" and their lawyers are the ones who will (again) reap the windfall. To make matters worse, they have the gall to ask for an additional $4.3 million in order to reward 90 key employees for hitting revenue targets! (http://www.kccllc.net/documents/1212821/1212821121106000000000011.pdf) Shameful on all accounts! The Judge should remove this team immediately a order repayment of all bonuses and retention pay.

  • Matt Wilson

    Mr. Michelson,

    I just finished reading your editorial on the Vertis bankruptcy and I simply wanted to applaud you for speaking up. The way I see it our bankruptcy laws do nothing to facilitate sanity in the market place but rather continue to concentrate both control and money in the hands of lawyers and large corporations. Your last sentence sums it all up perfectly.

    Thanks for speaking out.

    Matt Wilson

  • DLS

    It is a very strange life we have and a world we live in when the big boys can be paid the amount of money they are getting to drive a company in the ground so the investors can have their money and gains while those working to make the produce run are buried in the corner and will be kicked out the door when they lock the doors and say it is over go away. Most if not all will not recieve a Thanks or Job well done, just leave and feel lucky you had a job as long as yo did. HA!