OCZ Tech's Auction Terms Chill Bidding, Trustee Says

Law360, Wilmington (December 13, 2013, 10:15 PM EST) -- The U.S. Trustee's Office on Friday targeted the auction procedures for OCZ Technology Group Inc.'s upcoming bankruptcy sale, saying they contain conditions that serve only to protect Toshiba Corp.'s $35 million stalking horse bid from rival suitors.

U.S. Trustee Roberta A. DeAngelis contended Toshiba should not receive a breakup fee and be repaid for expenses if another party trumps its offer because the tech giant would have bid for OCZ even without those provisions in place.

Toshiba is furnishing OCZ with a debtor-in-possession loan and needed...
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