In re JW Resources, Inc.

(Bankr. E.D. Ky. Aug. 21, 2015)

The bankruptcy court overrules the unsecured creditors committee’s objection to the proposed break-up fees (totaling $375,000) in asset purchase agreements that the debtors entered into with a proposed stalking horse bidder. The court reviews the various approaches to determining the reasonableness of break-up fees, as well as the benefits in permitting them. The court ultimately concludes the fees here are based on the sound business judgment of the debtors and the committee failed to present compelling evidence or arguments in opposition. Opinion below.

2015-08-21 – in re jw resources

Author: Matt Lindblom