A Delaware bankruptcy judge rejected a proposed settlement between Lolli and Pops and its bankruptcy financier designed to elicit more bids for the candy shop chain’s assets, saying it would be wrong to grant lender litigation releases included in the deal.
Lolli and Pops’ agreement with lender Paxion Capital LP to lower the minimum for qualified bids “makes perfect economic sense” and may increase the likelihood of a competitive auction, but the release provisions are “fatal to the motion,” Judge Christopher S. Sontchi said at a Jan. 8 hearing in the U.S. Bankruptcy Court for the District of Delaware.
Lolli ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.