Kelson Bid For $15M Breakup Fee Nixed

Law360, New York (April 1, 2009, 12:00 AM EDT) -- Kelson Channelview LLC, the stalking horse bidder in the $500 million sale of a power plant in Reliant Energy Channelview LP's bankruptcy proceedings, cannot collect a $15 million breakup fee Reliant originally agreed to pay, a federal court has ruled.

The United States District Court for the District of Delaware on Tuesday affirmed decisions by the United States Bankruptcy Court for the District of Delaware that allowed Reliant to auction off and sell its assets but denied it the authority to pay Kelson the breakup fee....
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