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Judge Silverstein used the June 9 bench ruling to resolve the core confirmation dispute for Clovis’s liquidation case, moving the case from the asset-sale phase into plan implementation. The hearing was noticed as a bench ruling on the debtors’ disclosure statement and liquidation plan, and the minute entry records that the court gave its ruling on disclosure and confirmation. The later confirmation order approving the disclosure statement and confirming the Third Amended Joint Chapter 11 Plan confirms the result: final approval of the disclosure statement and confirmation of the Third Amended Joint Chapter 11 Plan of Liquidation.
That matters because the January sale calendar had already put the assets on separate disposition tracks, but the June ruling supplied the bankruptcy exit framework. The order, entered June 16, 2023, tied effectiveness to satisfaction or waiver of the plan’s conditions precedent, including that the confirmation order not be stayed, modified, or vacated on appeal. Professionals tracking recoveries, claim treatment, and post-sale wind-down mechanics now had the controlling plan architecture rather than just sale-process milestones.
At the March 15 omnibus hearing, the court granted Clovis’s motion to approve its key employee incentive program and related retention relief, with the minute entry directing the debtors to submit a revised proposed order. The signed order entered the next day gives final approval to a KEIP for eight employees, including the CEO, CFO, general counsel/CCO, chief medical officer/development lead, HR lead, chief scientific officer, an SVP of finance, and an associate director of project management.
The economics matter because the program is directly tied to sale recoveries: threshold KEIP payments are $1.35 million for a FAP asset sale and $1.0 million for a Rubraca sale, with incremental upside if FAP sale value exceeds the stalking-horse APA amount or Rubraca bids exceed $200 million. Aggregate KEIP payouts are capped at $6.35 million, and the order also raises the KERP cap to $2.24 million for retention payments to KERP employees and additional KERP employees under the KEIP/KERP order. The ruling aligns management incentives with the asset-sale path while creating administrative-priority compensation claims ahead of plan distributions.
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