Ownit's Creditors Decry CEO Pay, Legal Fees

Law360, New York (June 19, 2007, 12:00 AM EDT) -- Ownit Mortgage Solutions Inc.'s unsecured creditors are protesting $70,000 in fees that the bankrupt subprime lender plans to pay Pachulski Stang Ziehl Young Jones & Weintraub LLP for its help in putting together a compensation package for the company's CEO.

The opposition filed Wednesday in the central California bankruptcy court said that those fees—a small portion of Pachulski's $1.2 million total bill—were levied “for services that never had any promise of benefiting the debtor's estate."

According to the creditors, those fees were incurred during weeks of...
To view the full article, register now.