Chancellor McCormick s opinion in
Chalking up a victory for
deal certainty, this post-trial decision resolves all
issues in favor of seller and orders the buyers to close on the
purchase agreement. In reaching this order, the court applied
the prevention doctrine, finding that the unavailability of
buyer s debt financing did not permit buyer to circumvent its
obligation to close because buyer materially contributed to the
debt financing being unavailable. The application of the prevention
doctrine in this context is noteworthy and raises some interesting
(albeit unanswered) questions as it relates to the remedy regime
that has become commonplace in deals with private equity buyers.
Chancellor McCormick’s opinion in Snow Phipps Group, LLC, et al. v. KCake Acquisition, Inc., et al. (Del. Ch. April 30, 2021) is 125 pages long, but she helpfully digests the holding in.