ResCap granted court approval to pay $7.8 million in employee bonuses

By Caroline Salls

Pittsburgh, April 12 - Residential Capital, LLC received court approval to implement one key employee retention and two key employee incentive plans, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The retention plan would cover 155 non-insiders, and the incentive plans would cover eight company insiders, with a multi-year estate incentive plan covering six insiders and a short-term executive incentive plan covering two insiders.

ResCap said these plans provide for payment of $7.8 million in bonuses to 163 employees, with nearly 50% of that total being paid to the eight insiders.

Residential Capital, a New York-based mortgage originator and servicer, filed for bankruptcy on May 14, 2012. Its case number is 12-12020.

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