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

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

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

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.


Continue Reading When Is The Stalking Horse Break-up Fee A Benefit To The Bankruptcy Estate: Another Look at Calpine v. O’Brien Environmental Energy