The biggest deal casualty of the credit crisis has been Sallie Mae. It looks like now that the next step in the ugly confrontation is a trial in Delaware. The latest is that the once-commited buyers--J.C. Flowers, Bank of America and JP Morgan Chase, have rejected an overture by Sallie Mae to renegotiate a new deal. Sallie Mae apparently has been trying to woo the group over the last few months, offering to let them update their due diligence and the like. The group declined. It can't help Sallie Mae's cause that it also announced its earnings would be weaker than expected. A trial would likely center on whether the JC Flowers group would be required to pay the $900 million break-up fee. Stay tuned.  

For more:
- here's a Washington Post article

Related articles:
- Break up fees hitting banks?
- Almost buyers want out of Sallie Mae break up fee
- Sallie Mae saga continues

Read more on: Sallie Mae l Bank of America l JC Flowers l JPMorgan Chase