Creditors Object To Incentives In Tronox Asset Sale

Law360, New York (September 15, 2009, 4:56 PM EDT) -- The unsecured creditors committee in pigment producer Tronox Inc.'s Chapter 11 proceedings has lodged an objection claiming the company's stalking horse purchase agreement with chemical manufacturer Huntsman Corp. includes excessive and “wholly inappropriate” incentives.

The $415 million stalking horse bid announced last month would include $12.45 million in breakup fees and as much as $3 million in expense reimbursements, incentives the committee said are designed to sweeten the deal to entice a stalking horse bidder.

But Tronox doesn't need a stalking horse bidder, creditors contended....
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