Crescent Oil looks to offer break-up fee to stalking horse bidder

By Jennifer Lanning Drey

Portland, Ore., June 29 - Crescent Oil Co., Inc. requested court approval to provide Strasburger Enterprises, Inc. a break-up fee in connection with a letter of intent entered into by the two companies that names a $12 million bid from Strasburger as the stalking horse bid in the sale of substantially all of the company's assets, according to a Friday filing with the U.S. Bankruptcy Court for the District of Kansas.

Crescent wants to offer Strasburger a break-up fee of 3% of the total purchase price if it selects another offer.

Crescent said it entered into a letter of intent with Strasburger on June 26, and the agreement expires on July 15 unless the asset purchase agreement is executed before that date.

The company said Strasburger would not enter into the asset purchase agreement without the protection of a break-up fee.

Crescent Oil, an Independence, Kan.-based fuel distributor, filed for bankruptcy on Feb. 7. Its Chapter 11 case number is 09-20258.

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