For Cetero Research Execs, Bankruptcy May Bring Bonuses
4/11/2012 8:15:46 AM
Last month, Cetero Research filed for bankruptcy protection after the FDA issued an alert last year to drugmakers to reevaluate clinical tests over concerns about falsified data and manipulated samples. The CRO blamed the problem on a handful of employees who allegedly corrupted data as part of a scheme to work longer hours and qualify for extra pay. But Cetero lenders viewed this as a breach of health laws and regulations that amounted to a default on loans (back story). Now, the clinical research organization is trying to find a buyer while also maintaining operations, juggling bankruptcy demands and grooming the business for a sale. And so a dozen Cetero execs along with several project managers are seeking incentive bonuses totaling at least $1.3 million, a figure that is based on a ‘stalking horse’ bid set by creditors of at least $50 million, according to court documents (read here and here).