DeCODE Trustee Balks At Asset Sale Breakup Fee

Law360, New York (December 8, 2009, 5:39 PM EST) -- The trustee overseeing Icelandic genetic research company deCODE Genetics Inc.’s Chapter 11 case has objected to its proposed asset sale to stalking horse bidder Saga Investments LLC, claiming the current proposed breakup fee is exorbitant and unnecessary.

Trustee Roberta DeAngelis filed an objection to the sale and bidding procedures motion Monday in the U.S. Bankruptcy Court of Delaware.

In the objection, the trustee argues that proposed breakup and expense fee would equal $885,000, about 8 percent of the base cash price of the $11 million deal....
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