Texas Court Approves Linqto Bonus Plan for Liquidation
The court authorized a $2 million bonus program for executives at Linqto Texas LLC to drive the liquidation process.
Updated on Oct. 22, 2026 in People
Live Poll
Should executives be eligible for performance bonuses during a bankruptcy process?
The US Bankruptcy Court for the Southern District of Texas has appointed BW Asset Management Ltd. as the new liquidating trustee for Linqto Texas LLC. The court also authorized a $2 million bonus program for five executives tied to specific operational milestones.
Why it matters
This move signals a shift in the liquidation process as Linqto Texas LLC seeks to secure leadership stability during the transition. By tying significant payouts to performance goals, the court aims to ensure the timely creation of a liquidating trust.
The bankruptcy court authorized a $2 million bonus pool for five top executives of Linqto Texas LLC. This payment is contingent on the completion of the liquidating trust and other operational goals versus the prior administrative arrangement.
The players
BW Asset Management Ltd.
A subsidiary of Kroll LLC that provides corporate restructuring, turnaround, and insolvency services.
Linqto Texas LLC
A private company currently undergoing liquidation proceedings in federal bankruptcy court.
Forge Global Holdings Inc.
A marketplace for private securities that previously served as the liquidating trustee for Linqto Texas LLC.
The details
The court ordered the removal of Forge Global Holdings Inc. as the existing trustee, replacing it with BW Asset Management Ltd., a subsidiary of Kroll LLC. To facilitate a smooth wind-down, the newly approved bonus program provides financial incentives for executives to meet operational targets by late November. These incentives are specifically structured to reward the rapid transition of assets into a liquidating trust.
Timeline
October 22, 2026: The court approved the trustee change and executive bonus program.
November 23, 2026: Deadline for executives to meet milestones and finalize the liquidating trust.
Market Landscape
The court's decision follows standard Chapter 11 bankruptcy liquidation provisions that allow for incentive programs to retain key personnel through the end of an entity's operations. This change marks a transition in administrative oversight following the removal of Forge Global Holdings Inc.
Business owners should note that courts may approve aggressive retention bonuses if they are directly linked to the speed of liquidation and asset recovery. Operators overseeing winding-down companies should consult legal counsel on whether performance-based incentives for staff are viable during bankruptcy.
The takeaway
Using retention bonuses to expedite the bankruptcy process can protect value in a liquidation scenario. Operators should track the milestone deadline of November 23, 2026, to monitor how effectively the new trustee manages the transition of assets.
What happens next
Executives have until November 23, 2026, to meet the court-mandated operational milestones and create the liquidating trust to qualify for the $2 million in bonuses.
Further reading
For context on executive compensation and corporate governance, see the People section.
Live Poll
Should executives be eligible for performance bonuses during a bankruptcy process?
