Kelson Won't Get $15M Breakup Fee: 3rd Circ.

Law360, New York (January 15, 2010, 6:42 PM EST) -- Kelson Channelview LLC, the stalking horse bidder in a $500 million power plant sale in Reliant Energy Channelview LP's bankruptcy proceedings, will not collect a $15 million breakup fee Reliant originally agreed to pay, despite the fact that another company made the winning bid, a federal appeals court has ruled.

The U.S. Court of Appeals for the Third Circuit on Friday ruled that the U.S. Bankruptcy Court for the District of Delaware did not abuse its discretion in refusing to award the breakup fee to Kelson,...
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