Jeffrey P. Orleans, grandson of the founder of Orleans Homebuilders, has agreed to leave the bankrupt company in exchange for a $700,000 lump-sum payment,
the
Philadelphia Inquirer
reported.
If approved after a Nov. 8 hearing, the deal would clear the way for the company to emerge from bankruptcy under the control of its senior lenders and without an Orleans family member in charge.
The publicly traded Bensalem, Pa., company was founded in 1918 by Alfred P. Orleans and has built more than 75,000 homes. It filed for bankruptcy protection March 1, with about $375 million in debt to senior lenders and net debts of more than $400 million.
According to the
Inquirer
report:
The agreement says Orleans, 64, had claims for unpaid vacation, salary, deferred compensation, and incentive payments that could total more than $1.6 million.
Jeffrey Orleans also relinquished his rights to the “Orleans” trademark and other intellectual property, the article said. Within two years, he will be able to use more than 45 variations of his family name, but not “J.P. Orleans Homebuilders” or “A.P. Orleans Homebuilders,” the report noted. (Source:
Philadelphia Inquirer,
Oct. 20, 2010.)
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