U.S. Bankruptcy Court Judge Arthur B. Briskman, however, denied Earl's other request for $400,000 in consulting fees. Earl will also receive a car allowance, health and life insurance in a benefits package valued at a minimal $25,000 per year, lawyers following the bankruptcy case but not directly associated with it, tell Globe St.com.
"It makes you wonder, doesn't it, how a firm trying to reduce expenses is still able to pay its top man that amount of money," an Orlando bankruptcy lawyer not associated with the Chapter 11 filing tells GlobeSt.com on condition of anonymity.
Planet Hollywood continues to operate its 10 remaining company-owned restaurants on a court-approved debtor-in-possession status. That means the company must ask the judge for permission to pay all expenses and operational costs until it has completed it reorganization plan.
Planet Hollywood filed for protection from its creditors Oct. 15, listing $131 million in liabilities and assets of $121 million. The celebrity-themed restaurant chain first filed for Chapter 11 protection in October 1999 and emerged from bankruptcy protection in May 2000.
The company had 60 active restaurants in 1999 and is down to 25 franchised operations in Asia, Europe and the United States. Planet Hollywood continues to operate at Downtown Disney and Universal Orlando.
The company's stock is no longer listed on the Over-the-Counter Bulletin Board. On Oct. 22, the stock was trading at 10 cents per share, down from 55 cents on Aug. 16; and 30 cents on Sept. 27.
In the last 60 days, Planet Hollywood has closed six locations and vacated an estimated 180,000 sf in Washington, DC, Nashville, TN, San Diego, Atlanta, Baltimore and Seattle.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
