ResCap Fires Back At US In Defense Of $8M In Bonuses

Law360, New York (April 9, 2013, 5:45 PM EDT) -- Residential Capital LLC on Tuesday defended its $8 million in bonuses for employees, saying a New York bankruptcy court should ignore the U.S. trustee’s objection because the payments are needed to incentivize key workers to perform challenging tasks.

The bankrupt mortgage servicer says its key employee incentive plan, which would pay out $7.8 million to 163 people, will allow for the creation of hundreds of millions of dollars for the estate and that it has the support of the creditors’ committee.

U.S. Trustee Tracy H. Davis...
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