Judge denies bonuses for former Aloha Airlines execs
A federal Bankruptcy Court judge struck down a motion yesterday that could have paid Aloha Airlines' top two executives incentive compensation of more than a combined $1.3 million if the sale of the company's total assets satisifed a financial threshold agreed to by lender GMAC Commercial Finance LLC.
Judge Lloyd King denied a request by Chapter 7 trustee Dane Field to pay former Aloha Chief Executive David Banmiller and former Chief Financial Officer Jeffrey Kessler a bonus of more than $600,00 each if GMAC's debt -- initially $49 million -- is reduced to reduced to under $22.75 million. Aloha already sold its cargo unit for $10.5 million and its aviation contract services division for $2.05 million.
The bonuses would be in addition to $500 an hour -- not to exceed $25,000 a month -- that Banmiller and Kessler are now receiving to assist Field in the estate's liquidation.
Prior to the bankruptcy, which was filed on March 20, Banmiller's total compensation was about $50,000 a month and Kessler's compensation was about $33,000 a month, according to court filings.