Why is it called a stalking horse bid?
A stalking-horse bid is an initial bid on the assets of a bankrupt company. … The stalking horse sets the low-end bidding bar so that other bidders can not underbid the purchase price. The term “stalking horse” originates from a hunter trying to conceal himself behind either a real or fake horse.
Is a stalking horse bid binding?
Once the bankruptcy court approves the stalking horse agreement, it becomes binding on all parties and difficult, if not impossible, to renegotiate.
What is a stalking horse in politics?
A stalking horse is a figure used to test a concept or mount a challenge on behalf of an anonymous third party. If the idea proves viable or popular, the anonymous figure can then declare its interest and advance the concept with little risk of failure.
Is a stalking horse?
A stalking horse is a buyer who has agreed to make a minimum bid before a bankruptcy auction. The sale process will now be conducted without a stalking horse bid. The stalking horse bidder typically enters into a sale contract with the debtor for the subject assets, thereby setting a floor, or minimum bid.
What is a stalking?
“Stalking is a pattern of repeated and unwanted attention, harassment, contact, or any other course of conduct directed at a specific person that would cause a reasonable person to feel fear,” according to the Department of Justice.
What is seller sniping stalking method?
Abstract. Bid sniping is the most common strategy used in online auctions whereby the bidder places a bid in the closing seconds in order to win the auction. … Our proposal also makes intelligent decisions to maximize the price for the seller based on the auction‟s bid volume.
How does a 363 sale work?
A 363 Sale refers to the sale of an organization’s assets. … The bankruptcy court grants the debtor-in-possession or trustee the power to sell the organization’s assets even when there is an objection from junior creditors. Also referred to as subordinated debt, after a court hearing of their petition.
What is a 363 sale definition?
The term “363 sale” refers to a sale of a debtor’s assets authorized under section 363 of the Bankruptcy Code. Sales of assets under section 363 can range from the sale of office furniture by a chapter 7 trustee or a sale of substantially all assets of a chapter 11 debtor.
What is a credit bid?
Also known as credit bidding. The right of a secured creditor under the Bankruptcy Code to use its secured claim against a debtor as currency in an auction of its collateral in a debtor’s section 363 sale (§ 363(k), Bankruptcy Code).