Residential Capital LLC, the mortgage lender controlled by government-owned finance company Ally Financial Inc., wants to pay a $2 million bonus to its chief restructuring officer for shepherding the company through bankruptcy, Dow Jones Newswires reported yesterday. ResCap said in a court filing that Lewis Kruger, a bankruptcy lawyer at Stroock & Stroock & Lavan, who took over in February to lead ResCap's restructuring efforts, deserves a "success fee" for hashing out the terms of a far-ranging settlement with ResCap's creditors and its corporate parent. The success bonus comes on top of Kruger's $895 hourly fee for work tied to ResCap's bankruptcy. The CRO's appointment came at a time when ResCap's restructuring was clouded in uncertainty as creditors argued that the mortgage lender's board couldn't be trusted to aggressively negotiate a settlement with Ally.
