Rent-A-Center Pushes For $126.5M Deal Bust Fee In Chancery
Law360 (April 2, 2019, 3:17 PM EDT) -- Rent-A-Center told Delaware's Chancery Court on Monday that contract terms give Vintage Capital Management no escape from a $126.5 million reverse termination fee triggered by the private equity firm missing a deadline in the pair’s $1.4 billion merger pact.
The assertions followed an order by Vice Chancellor Sam Glasscock III on March 14 for argument from both sides on whether the breakup fee should apply to the broken deal, based on a finding that Vintage “simply forgot” to formally extend the agreement after antitrust reviews delayed closing and still wanted to merge despite the deal breach.
In an opinion upholding Rent-A-Center...
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