Fox Partner Mette Kurth discusses iPic-Gold Class Entertainment, Inc.’s Chapter 11 case in Delaware:

iPic-Gold Class Entertainment, Inc. (IPIC) has filed a Chapter 11 case in Delaware to sell its business through a “363” bankruptcy auction.

iPic is a Florida-based, publicly traded movie theater and restaurant company with 16 locations in 9 states that provide

Recently in the RadioShack Corp. case, the Delaware Bankruptcy Court granted the debtor’s bid procedures motion allowing the debtor to auction certain of its assets, including trademarks and collection of customer data, while directing RadioShack to provide more information in terms of what personal information has been collected by the company and is to be

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