US Trustee Rips Breakup Fee In Furniture Brands Ch. 11 Sale

Law360, Wilmington (September 26, 2013, 1:54 PM EDT) -- The U.S. trustee's office on Wednesday took issue with a proposed $6 million breakup fee attached to Oaktree Capital Management's $166 million stalking horse bid for bankrupt Furniture Brands International Inc., arguing it's too high given the cash portion of the deal.

U.S. Trustee Roberta A. DeAngelis contended that the breakup fee amounts to 7 percent of the $84.3 million cash component of Oaktree's bid, a total the bankruptcy watchdog called excessive, according to her motion in Delaware bankruptcy court.

The bankruptcy watchdog suggested that a...
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