Delta Petroleum Trustee Objects To $1.5M Breakup Fee

Law360, New York (June 4, 2012, 1:26 PM EDT) -- The U.S. trustee for bankrupt energy company Delta Petroleum Corp. on Friday objected to a $1.5 million breakup fee for Laramie Energy II LLC in the event that Delta pulls out of a reorganization plan premised on a joint venture between the two companies.

The breakup fee is not appropriate under Third Circuit law because to award a breakup fee to a potential bidder, the court must determine that the breakup fee was an actual and necessary cost and expense of preserving the estate, U.S. Trustee...
To view the full article, register now.