Yes, but those arrangements should be brought before the bankruptcy court for approval after filing.
Bottom line, however, is that I don't have enough information to opine as to whether anything improper occurred, or not.
“Bottom line, however, is that I don’t have enough information to opine as to whether anything improper occurred, or not.”
I have experience with a number of retail bankruptcies as a creditor. Based on my experience the attorneys and accountants working for the creditors are extremely good at extracting every penny out of the carcass of the company. If anything improper took place before the bankruptcy was filed, or during the bankruptcy process, they will discover it and provide the information to the bankruptcy judge and the appropriate prosecutor.
The judge overseeing a bankruptcy of this size likely has plenty of experience and is tough as nails. Bankruptcy judges aren’t politicized, they focus on shutting the firm down efficiently and protecting the assets for the creditors as provided for in the law. The politicians making noise know the process will be fair and governed by the laws they wrote. If the politicians don’t like the rules governing payments to workers and executives, they have only themselves to blame.