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Court Authorizes Payment of Incentives to Diamond Senior Management

The U.S. Bankruptcy Court for the District of Delaware issued an order on Friday authorizing the payment of incentive pay to certain members of senior management at Diamond Glass as outlined in the company's proposed executive incentive plan (CLICK HERE for related story). The decision follows an objection by the unsecured creditors committee to the original motion for approval of the plan. Previously, the Court had overruled this objection, but placed it on Friday's hearing agenda, with the following notation: "This matter is going forward as a status report and to obtain further guidance from the Court in connection with its May 8, 2008, ruling on this matter."

The order signed by U.S. bankruptcy judge Christopher Sontchi reads that the court "found that the relief requested by this Motion is in the best interest of the Debtors, their estates and creditors, and other parties in interest."

The order also notes that the "authorization granted hereby to make payments to Senior Management under the EIP shall not create any obligation on the part of the Debtors or their officers, directors, attorneys or agents to make payments under the EIP and none of the foregoing persons shall have any liability on account of any decision by the Debtors not to honor the EIP."

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