- 11 U.S.C.
In re Residential Capital LLC
Aug
28
2012
Ruling
Debtor's motion for authorization to implement key employee incentive plan denied absent relationship to business goals.
Procedural posture
The chapter 11 debtor and its affiliated debtors (the debtors) filed a motion for authorization to implement a key employee incentive plan (KEIP) for certain key insiders of the debtors. The United States Trustee (UST) opposed the motion, arguing that 11 U.S.C.S. § 503(c)(1) applied to the KEIP because it was primarily retentive, and that the KEIP should not be approved because it did not meet the requirements of that section.
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Court
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