Credit-Based Asset Servicing and Securitization LLC, once a buyer and servicer of "scratch and dent" home mortgages, filed a motion in bankruptcy court to terminate employment contracts with Saul Sanders and Bruce Williams, the founders and co-chief executive officers.
When C-Bass sold Litton Loan Servicing LP in December 2007 for $428 million, the buyer, an affiliate of Goldman Sachs Group Inc., agreed to pay the two executives' salaries. By rejecting the employment contract, C-Bass would avoid paying benefits and the employer's portion of withholding taxes. The motion is on the calendar for a Dec. 16 hearing.
C-Bass, based in New York, filed to liquidate under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan on Nov. 12. The company is 91% owned by the mortgage insurers MGIC Investment Corp. and Radian Group Inc.
