Delaware Fee Demand Imperils Wave Computing’s Bankruptcy Sale (1)

Delaware’s last-minute demand for franchise tax fees is threatening to upend bankrupt Wave Computing Inc.'s $61 million sale and its Chapter 11 plan, according to court filings.

The processor technology company filed an emergency motion Tuesday, asking the bankruptcy court to compel the Delaware secretary of state to issue Good Standing Certificates that it needs to close the sale to Tallwood Technology Partners LLC. The sale is the cornerstone of Wave’s recently confirmed plan.

Delaware won’t issue the certificates unless the franchise tax fees are paid, Wave said.

There’s a “significant possibility” that Tallwood will walk away from the deal ...