But awards $5m to executives

According to a filing with regulators, reported by the Milwaukee Journal Sentinel, Briggs & Stratton Corp. has chosen not to make a $6.7 million interest payment, but the company’s board of directors has voted to give executives and other key employees more than $5 million in cash retention awards.

The report in the Milwaukee newspaper said that the filing with the Securities and Exchange Commission, stated that the board also restored the base salaries of executives and managers, effective July 1, from previously reduced levels in effect since April.

The article goes on to say that the choice not to make the interest payment due on June 15th, resulted in the triggering of a 30-day grace period before it constitutes a default on a credit agreement.

A quote from the Milwaukee Journal Sential reads, "The cash retention awards for certain executive officers and other key employees included $1.2 million for Todd Teske, chairman, president and CEO; $600,000 for Mark Schwertfeger, senior vice president and chief financial officer; $425,000 for David Rodgers, senior vice president and president of the engines and power division; and $425,000 for Harold Redman, senior vice president and president of the turf and consumer products division."

A statement given to the paper from spokesperson Rick Carpenter said, "Within this COVID environment and as part of a series of actions to increase our financial flexibility, we elected to take advantage of the contractual 30-day grace period with respect to the interest payment owed to our Note holders. Our decision to take advantage of the month grace period does not affect compliance with our Revolving Credit Agreement as this is a contractually-allowed step for us to take. Finally, the retention awards, within this COVID environment, are to ensure that the company retains the commitment, experience and expertise as a group to help align the company in these tough economic times."

You can read the whole article here - which states that Todd Taske could not be reached to answer the paper's questions.

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