We’ve noted that the Robbins Brothers reorganization plan is an unusual one, as it essentially sells part of the company to insiders. Now certain aspects of that plan have a noteworthy adversary in the acting U.S. bankruptcy trustee.
In an objection filed today—on the heels of a similar objection by Paradox Capital—the Trustee argued that the “Bid Protections” sought by Robbins would “chill bidding and make it all but inevitable that the Stalking Horse [owner Weston Presidio] will be the winning bidder.” It seeks to cancel a proposed breakup fee and expense reimbursement.
This proposed deal has put vendors in a tough spot. A lot of vendors think it will hurt them, and some aren’t crazy about the new Robbins Brothers having the same people in charge as the old one (a provision of this deal, according to what the trustee filed.) But in the end most would prefer to see Robbins Brothers alive than dead.