Invention startup Quirky Inc. will need to change some of the terms of a $1.6 million bonus package for four top executives before a bankruptcy judge will sign off on it, but the company did obtain approval to sell the company's assets during an auction next month, Dow Jones Daily Bankruptcy Review reported today. Bankruptcy Judge Martin Glenn said during a hearing on Friday that he would be willing to approve the first piece of the bonus plan, which pays out 33 percent, or roughly $430,000 of the $1.6 million package, to the executives for having secured a lead bidder. But Judge Glenn said that the second milestone, which provides 50 percent of the package if the executives line up a competing bidder, would result in a net loss to Quirky's bankruptcy estate cannot be approved. During the hearing, the judge explained that the executives would receive an additional $650,000 roughly in aggregate for lining up a bid that was only worth an additional $200,000 to the estate. Lawyers for Quirky said they would rework that threshold and present a new package for the judge's consideration by today.
