Federal Judge Allows Musicland Breakup Fee

Law360, New York (March 6, 2006, 12:00 AM EST) -- Trans World Entertainment Corp. got another boost in its efforts to take over its ailing rival, as a bankruptcy judge has allowed Musicland Holding Corp. to shell out a controversial $3 million breakup fee to the entertainment retailer if it fails to win at an auction.

Judge Arthur J. Gonzalez’s decision is part of a broader ruling that sanctions the procedures for Musicland’s asset sale, paving the way for potential buyers to bid in an auction scheduled for March 21 in New York.

The condition has...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.