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Third Circuit Clarifies Standard For Allowance of Break-Up Fees in Section 363 Sales

By Kenneth L. Baum on February 8, 2010
Posted in Recent Developments

In a recent decision, the United States Court of Appeals for the Third Circuit further defined its standard for awarding a break-up fee to an unsuccessful “stalking horse” bidder for a debtor’s assets. In In re Reliant Energy Channelview LP, ___ F.3d ___, 2010 WL 143678 (C.A. 3 (Del.) 2010), the debtors sought to…

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