On September 14, 2015, the Third Circuit released a precedential opinion (the “Opinion”) which addressed payments from a buyer to non-debtor parties in a 363 sale. The Third Circuit’s opinion is available here. If you prefer the version of the Opinion published by Westlaw, it is ICL Holding Company, Inc., et al. v. United States
363 Sales
An Update on the Deb Shops Bankruptcy
By Fox Rothschild LLP on
Posted in Bankruptcy Case Summaries
Introduction
On June 26, 2011, clothing retailer Deb Shops, Inc. (“Deb”) and its related entities filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. This post will look at why Deb filed for bankruptcy, the scope of the company’s business, as well as provide an update on the…
Thompson Publishing Files for Bankruptcy, Hoping to Complete a 363 Sale of Assets
By Fox Rothschild LLP on
Posted in Bankruptcy Case Summaries
Introduction
On September 21, 2010, Thompson Publishing Holding Co., Inc. (“Thompson”) and various related entities, filed petitions for bankruptcy in the United States Bankruptcy for the District of Delaware. (View a copy of Thompson’s Petition for Bankruptcy here.) This post will look briefly at Thompson’s business, why it filed for bankruptcy and what…
Magic Brands, Owner of Fuddruckers and Koo Koo Roo, Files for Bankruptcy
By Fox Rothschild LLP on
Posted in Bankruptcy Case Summaries
Introduction
Magic Brands, LLC, the owner of food chains “Fuddruckers” and “Koo Koo Roo,” filed for bankruptcy in Delaware on April 21, 2010. The company filed a chapter 11 petition for bankruptcy, hoping to reorganize its business and conduct a sale of most of its assets under section 363 of the Bankruptcy Code. This…
A Tale of Two Bankruptcy Auctions
By Fox Rothschild LLP on
Posted in Bankruptcy Law Basics
Introduction
In recent months, bankruptcy auctions went forward in two different bankruptcy proceedings that illustrate the extent to which auctions can vary both procedurally and substantively. One auction involved the sale of a single asset and lasted less than an hour, while the second auction involved the sale of the debtor’s entire business and lasted…
MagnaChip Semiconductor Files for Bankruptcy Seeking Approval of Asset Sale and Plan of Liquidation
By Fox Rothschild LLP on
Posted in Bankruptcy Case Summaries
Introduction
On June 12, 2009, MagnaChip Semiconductor (“MagnaChip”), filed a Chapter 11 Petition for Bankruptcy in the United States Bankruptcy Court for the District of Delaware. As reflected in MagnaChip’s Declaration in Support of First Day Motions (the “Declaration”), MagnaChip manufactures and sells analog and mixed-signal semiconductor products for consumer electronics. MagnaChip’s conductors are…
A Closer Look at Chapter 11 Bankruptcy Auctions
By Fox Rothschild LLP on
Posted in Bankruptcy Law Basics
Introduction
On May 1, 2009, Magna Entertainment (“Magna”) filed a motion in the United States Bankruptcy Court for the District of Delaware whereby it sought authority to schedule an auction, receive approval of auction bid procedures and proceed with the sale of assets (the “Sale Motion“). I have previously written about bankruptcy sale…
When Is The Stalking Horse Break-up Fee A Benefit To The Bankruptcy Estate: Another Look at Calpine v. O’Brien Environmental Energy
By Fox Rothschild LLP on
Posted in Recent Developments in Bankruptcy Law
Today in the PPI Holdings bankruptcy, the PPI debtors presented their bid procedures motion which sought approval of the procedures by which PPI would sell substantially all of its assets. PPI’s motion also sought approval of a break-up fee for the stalking horse bidder. In support of the break-up fee, PPI cited the Third Circuit’s decision in Calpine Corp. v. O’Brien Envtl. Energy, Inc. (In re O’Brien Envtl. Energy, Inc.), 181 F.3d 527 (3d Cir. 1999).
Given the increase in bankruptcies, break-up fees will continue to be an issue for debtors and creditors alike. The purpose of this post is to take a look at the O’Brien decision and consider when a break-up fee is appropriate, and the factors courts will consider in deciding to award such fees.…