Bonus For GSC Head Approved Over Trustee Objection

Law360, New York (July 8, 2011, 5:18 PM EDT) -- A New York bankruptcy judge authorized a proposed $1 million bonus to the president of bankrupt GSC Group Inc. on Thursday over the objection of the U.S. trustee, who argued the payout was unreasonable.

Saddled with $209 million in debt to Black Diamond Capital Management LLC, investment company GSC filed for bankruptcy protection in August with roughly $8 billion in assets under management. Black Diamond is poised to acquire the business with a $269 million credit bid.

U.S. Bankruptcy Judge Arthur J. Gonzalez said the proposed...
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