Webvan Plans OKd for Bonus, Severance
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Webvan Group Inc., a former online grocer that filed for bankruptcy in July, won a judge’s approval to launch a $1.5-million employee-retention and severance program and sell $1.99 million in inventory.
At a hearing in federal court in Wilmington, Del., Webvan said there were no major objections from a creditor committee or others to the program, which would distribute as much as $1.05 million in bonuses and as much as $450,000 in severance pay among 75 employees.
The program “is critical to a successful sale” of Webvan, which is liquidating its assets, the company’s attorney said.
Lawyers for Webvan and creditors said after the hearing that U.S. District Judge Joseph Farnan Jr. isn’t required to approve a separate severance plan that would pay former Chief Executive George Shaheen $375,000 a year for life.
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