US Trustee Rips Calif. Gym's 'Excessive' Ch. 11 Break-Up Fee

Law360 (January 6, 2021, 3:54 PM EST) -- The federal bankruptcy watchdog took issue Tuesday with $1.5 million in proposed bid protections offered up by California-based fitness company In-Shape in connection with its potential $45.3 million sale to an affiliate of post-petition lenders, saying the steep break-up fee may discourage competing bids.

In-Shape, which sought Chapter 11 protection in mid-December citing COVID-19 restrictions that limited its ability to operate its health clubs, does not need a $1.5 million break-up fee to preserve the value of its estate under Chapter 11 because the potential purchaser already has a strategic incentive to bid, U.S. Trustee Andrew Vara told the court in...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!