It looks bad but in a lot of situations it is what they have to do to meet their other obligations. If it was criminal the courts would rule against it but they don't. Most of the time the creditors aren't able to claw back any of those bonuses since they are typically paid out according to an established bonus plan. They also pay out big retention bonuses to keep people on the job during the bankruptcy and stuff like that. There is a lot of money to be made during a bankruptcy if you're on the right side of the table. Icahn is the guy getting creamed in this deal. Looks like he might lose his $1.5B investment in the company.