ResCap Can’t Justify $8M Employee Bonuses, US Trustee Says

Law360, New York (April 4, 2013, 4:56 PM EDT) -- The U.S. Trustee's Office took issue Wednesday with part of a plan for bankrupt real estate financier Residential Capital LLC to pay nearly $8 million in employee bonuses as it goes through Chapter 11 proceedings, saying the compensation can't be justified.

ResCap, which filed for bankruptcy in May 2012, asked the U.S. Bankruptcy Court for the Southern District of New York in March to approve a key employee incentive plan, or KEIP, that would pay out $7.8 million to 163 people, according to court documents....
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