Client terminated employment and is awaiting his deferred comp payout. Deferred comp plan says that for separation from service, comp will be paid out in installment payments over three years. His employment has already terminated, but the company is in talks with a buyer to do an F reorg. Buyer does not want to assume the deferred comp plan even though it is fully funded. Seller wants the client to take a lump sum, but client does not want a lump sum and the terms of the plan require that his payout be over three years. Because an f reorg is an exchange of stock for equity, is there any way to get the deferred comp plan out of oldco so client can receive installment payments?
