Reuters: Regulatory News: ResCap wins court OK to pay $14.9 mln in incentive payouts

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ResCap wins court OK to pay $14.9 mln in incentive payouts Aug 16th 2012, 11:47 Thu Aug 16, 2012 7:47am EDT Aug 16 (Reuters) - Residential Capital LLC, the bankrupt mortgage lending unit of Ally Financial Inc, won court approval on Wednesday to pay $14.9 million in incentive payments to hold onto 191 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. 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.

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