US Trustee Blasts $1M Bonus For GSC Head

Law360, New York (June 13, 2011, 5:21 PM EDT) -- The U.S. trustee monitoring GSC Group Inc.’s Chapter 11 proceeding in New York bankruptcy court on Friday blasted a proposed $1 million bonus for the insolvent investment company’s president.

The proposed payout to Peter R. Frank should be nixed by the bankruptcy judge because the lavish bonus is not consistent with the company’s past practices and inappropriately rewards Frank for the sale of GSC’s assets to Black Diamond Capital Management LLC, claims U.S. Trustee Tracy Hope Davis.

“Chapter 11 trustee has failed to meet his burden...
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