BofA Objects To Meruelo Maddux Compensation Plan

Law360, New York (May 29, 2009, 12:00 AM EDT) -- Bank of America NA has objected to planned bonuses for executives at bankrupt Los Angeles-based real estate developer Meruelo Maddux Properties Inc., saying the company can't afford the proposed pay.

In an objection filed Thursday in the U.S. Bankruptcy Court for the Central District of California, Bank of America, one of the company's creditors, said continuing to pay executives at 2007 levels with bonuses on top of that makes no sense given the company's financial state.

If the bankruptcy court does not reduce the compensation figures,...
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