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CODA bonuses pulled, more bankruptcy issues remain

Randall Chase, AP Business Writer

WILMINGTON, Del. (AP) -- Attorneys for failed electric car maker CODA Holdings have withdrawn a request asking a bankruptcy judge in Delaware to approve up to $425,000 in bonuses for 16 top managers and directors.

The company withdrew the request prior to a hearing Wednesday after it drew objections from creditors and a U.S. bankruptcy trustee.

Meanwhile, the hearing itself was delayed for hours as attorneys tried to resolve several other issues.

Attorneys for the government and CODA's official creditors committee argued in court papers last week that CODA's proposed bankruptcy financing and sale plans unfairly benefit a group of debtors, led by an affiliate of Fortress Investment Group, who are seeking to acquire the company for $25 million.

At a hearing earlier this month, the judge also expressed reservations about Los Angeles-based CODA's plan.