E&Y acts over ONS retention bonus plan

ADMINISTRATOR’S COURT BID TO BLOCK PAYOUTS

Published: 19/02/2009

ADMINISTRATORS at Oilexco North Sea (ONS) said yesterday they had gone to court in an attempt to prevent all staff and contractors being paid a retention bonus.

Ernst and Young was appointed administrator of the business last month and has received many expressions of interest in buying some or all of ONS, which employs around 100 onshore and offshore.

A spokeswoman for E&Y said the Canadian parent of ONS wanted to pay retention bonuses to keep people working throughout the administration process.

Senior managers are thought to be in line for the biggest payouts, amounting to six months’ salary.

The E&Y spokeswoman said the firm opposed retention bonuses and had formally gone to court because it did not agree this was in keeping with what it was trying to do for ONS in administration.

It is expected that the sale of ONS will be concluded around the end of next month.

(The Press & Journal)