CORRECTED-ResCap wins court OK to pay $10.8 mln in incentive payouts
(Corrects headline and paragraph one to show that the judge approved only $10.8 million in incentive payouts and is yet rule on the $4.1 million incentive payment to senior executives)
Aug 16 (Reuters) - Residential Capital LLC, the bankrupt mortgage lending unit of Ally Financial Inc, won court approval on Wednesday to pay $10.8 million in incentive payments to hold onto some key employees.
The company had sought to pay $10.8 million to 174 employees, which included people who work in the finance, legal, origination, technology and other operations.
ResCap also sought to pay $4.1 million to 17 senior executives, not including Chief Executive Officer Thomas Marano. A judge is yet to rule on the incentive payment sought for senior executives.
These recipients together comprise roughly 5 percent of ResCap's 3,625-person workforce, a court filing showed.
ResCap said the payments would help maximize the value of the company, encourage executives to take on restructuring and sale-related duties, and help ensure that employees with "irreplaceable knowledge" of the business do not leave.
Once part of General Motors Corp, Ally put ResCap into Chapter 11 bankruptcy protection on May 14 as a means to address the unit's mortgage-related liabilities. Ally is roughly 74 percent-owned by taxpayers, and did not file for court protection.
The case is In re: Residential Capital LLC, U.S. Bankruptcy Court, Southern District of New York, No. 12-12020. (Reporting by Tanya Agrawal in Bangalore)
- Special Report: Thailand secretly supplies Myanmar refugees to trafficking rings |
- UPDATE 2-China bars banks from bitcoin transactions
- The 10 Most Corrupt and Least Corrupt Countries in the World
- Obama says he's not allowed iPhone for 'security reasons'
- China's airspace zone has caused apprehension: Biden |