ResCap Says Restructuring Chief Deserves $2M Bonus

Law360, New York (January 27, 2014, 4:57 PM EST) -- Attorneys for Residential Capital LLC on Friday threw their weight behind a bid to pay the defunct mortgage servicer’s chief restructuring officer a $2 million bonus, shooting down protests from the federal government’s bankruptcy watchdog.

The lawyers say CRO Lewis Kruger should be paid the $2 million “success fee” due to his work on the enormously complex bankruptcy, saying his service was key to ResCap’s ability to ultimately put forward a plan that had the support of almost all of ResCap’s key stakeholders.

Furthermore, they argue,...
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