Stalking horse bid. This also benefits the company as a higher initial bid can A stalking horse bid is an initial bid on a debtor’s assets, such as the bids given for the Weinstein Co. Feb 27, 2025 · A stalking horse bid is an initial bid on the assets of a bankrupt company chosen by the company to set the minimum price. This bid sets the baseline against which other potential buyers will compete during a bankruptcy auction. In bankruptcy cases, a stalking-horse bid refers to a deal with a potential buyer that is hidden from the public, creditors, and the courts. After an initial bidder is found, establishing a floor price, the process is opened to a potentially wider group of interested buyers. The initial bidder receives protections such as breakup fees to offset risks. Feb 1, 2025 · A stalking horse bid is an initial offer on a bankrupt company’s assets, setting a benchmark for subsequent bids. To prevent other bidders from underbidding the purchase price, the stalking-horse bidder sets the floor purchase price at the low end of the range. Sep 16, 2024 · In this article, we delve into the definition, workings, advantages, disadvantages, and examples of stalking horse bids, exploring how they shape bankruptcy auctions. Apr 10, 2025 · In the intricate dance of bankruptcy auctions, the stalking horse bid often plays a pivotal role, setting the stage for a competitive bidding environment. swj mfwy 1d17 uy c4ac1q pbysmrn 8or2ba y65s zsuhj ukczb