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Bankrupt sports-equipment distributor Maurice Sporting Goods Inc. came to court last week and intends to sell the business to investment firm, Middleton Management Co. The dilemma that was facing Judge Christopher Sontchi was that Maurice and its primary lender, BMO Harris Bank N.A, were seeking approval for a provision that would allow Middleton to collect a $150,000 breakup fee in the event the sale process falls through, according to a WSJ Pro Bankruptcy commentary. What is unusual in the case of Maurice, according to the commentary, is that the company wanted Judge Sontchi to approve the fee before the parties had finalized an asset purchase agreement or submitted to the court papers outlining how the proposed sale process is expected to play out. What is on file is a signed letter of intent from Middleton to serve as a stalking-horse bidder in a proposed chapter 11 auction for Maurice’s assets. The fee, as well as the conditions under which it would be awarded to Middleton, is outlined in the letter of intent and papers related to a bankruptcy loan being provided by BMO Harris. Despite expressing misgivings about the fee, Judge Sontchi approved the provision, saying he wasn’t willing “to play chicken with the survival of this case” over a relatively small amount of money.

National Air Cargo Inc.’s debt-repayment plan has been approved by a federal judge, clearing the way for the struggling military-transport contractor to emerge from bankruptcy protection after more than three years, the Wall Street Journal reported. Founder Christopher Alf said that he is prepared to put more than $12 million into the upstate New York-based carrier, which filed for bankruptcy in October 2014 after the U.S. military cut back spending on Middle East operations. Mr. Alf and his wife, Lori, own the airline. The proposal from National Air Cargo officials to pay off a portion of the airline’s roughly $12.4 million in debt received approval from Bankruptcy Judge Michael Kaplan, according to a Nov. 9 order signed in U.S. Bankruptcy Court in Buffalo, N.Y. Company officials said that at least 60 percent of that amount will be paid, but the exact dollar figure hasn’t been disclosed. It is also unclear how much money Mr. Alf will ultimately contribute. Most of National Air Cargo’s debt stemmed from a roughly $10 million legal judgment won by aircraft provider Global BTG LLC in an aircraft-leasing dispute. Global BTG officials sued National Air Cargo in February 2011, saying that the company unfairly walked away from a deal to use eight Boeing 747 cargo planes that was being arranged by Global BTG.