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...
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