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...
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Case Title

Delta Petroleum Corporation


Case Number

1:11-bk-14006

Court

Delaware

Nature of Suit

Date Filed

December 15, 2011

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