Judge Strikes Breakup Fee From LSP Stalking Horse Deal

Law360, New York (July 26, 2012, 5:28 PM EDT) -- A Delaware bankruptcy judge on Thursday nixed a controversial $5.5 million breakup fee power plant operator LSP Energy LP pledged to South Mississippi Electric Power Association, which swooped in earlier this month with an eleventh-hour stalking horse agreement that riled other would-be buyers.

Following a Thursday morning hearing in which rival suitors and LSP's biggest unsecured creditor questioned the legitimacy of the fee and the SMEPA deal in general, U.S. Bankruptcy Judge Judge Mary F. Walrath left SMEPA's $249 million offer intact but struck the termination...
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