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In its complaint, Vintage Capital alleged that Rent-A-Center's "post-signing change of heart and a desire to score a hefty reverse termination fee" were not grounds to terminate the merger agreement under Delaware law.
One of the first of the reverse termination fee deals to fail.
In the end, I find the midmeeting negotiation of the reverse termination fee terribly interesting.
Well, for one thing, Accredited did not agree to a reverse termination fee provision.
The few significant private equity deals announced since January have had a reverse termination fee and barred specific performance.
And for the reverse termination fee to be payable under section 8.3(c), these undisclosed conditions need to be satisfied.
A significant portion of the disclosure focuses on the Wrigley board's negotiation of the reverse termination fee.
The parties are now litigating in New York and Delaware over the $170 million reverse termination fee.
The ball is now in 3Com's court to attempt to collect the $66 million reverse termination fee.
This is not a pure reverse termination deal where the buyer can walk at its discretion as in Clear Channel.
Buyers simply skipped the MAC invocation and paid the reverse termination fee.
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