What is a stalking horse asset purchase agreement?

A stalking horse offer, agreement, or bid is a bid for a bankrupt firm or its assets that is arranged in advance of an auction to act as an effective reserve bid. The intent is to maximize the value of its assets or avoid low bids, as part of (or before) a court auction.

What is a stalking horse purchase agreement?

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 legally binding?

To compensate the stalking horse for its time and effort, certain incentives are typically negotiated, subject to bankruptcy court approval. … That way, the debtor’s agreement to bidding incentives is binding on the debtor at the time it signs the purchase agreement, not later upon bankruptcy approval of such incentives.

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Can a creditor be a stalking horse bidder?

Stalking horse can require its version of an asset purchase agreement. Whether a bid is qualified for participation. Whether the bidding process is open or silent. The terms a secured creditor may be allowed to credit bid.

Who owns the stalking horse?

Andrew Carter and Jesse Selke from the Delia Foley’s Group, as well as industry veteran Jason Zink, are the new owners of Stalking Horse at 26 E. Cross St. in Federal Hill. The trio recently started renovations on the top two floors of the approximately 10,000 sq.

What is a dark horse bid?

In politics, a “dark horse” is a candidate for office for whom little is known or for whom expectations are low, but who then goes on to unexpectedly win or succeed.

What is a naked auction?

Now, Kodak’s failure to secure a stalking horse for its digital capture and imaging patents has the company preparing to hold a “naked” auction, in which no suitor makes an opening bid prior to the start of the auction.

What is the meaning of idiom a stalking horse?

If you describe a person or thing as a stalking horse, you mean that it is being used to obtain a temporary advantage so that someone can get what they really want. … The stalking horse then withdraws in favour of a stronger challenger.

What is a topping fee?

In a 363 auction a type of break-up fee that the debtor agrees to pay to an initial proposed purchaser (the stalking horse) if the proposed purchaser is not the prevailing bidder in the auction.

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What is overbid protection?

What is that? The short and easy answer is that an overbid is an auction conducted during a hearing to approve a bankruptcy sale. You see Bankruptcy Code § 363 authorizes a debtor-in-possession or Trustee, to sell property of the estate other than in the ordinary course of business.

Who is most likely to play the role of stalking horse in a section 363 merger or acquisition?

A 363 sale APA thus, explicitly puts the buyer in the position of being the “stalking horse bidder” for the seller’s efforts to obtain a higher price for its assets in a public auction.

How does debtor in possession financing work?

DIP Financing signals to vendors and customers that the debtor has sufficient capital to continue operations during the bankruptcy process or to conduct an orderly sale or liquidation process that can help maximise the existing lend- er’s recovery.

How do you use stalking horse in a sentence?

He doesn’t actually want to be elected—he’s just a stalking horse who’s trying to see how fractured our party really is. 2. Something that conceals a person’s true intentions. I’m afraid that this deal is just a stalking horse for a more nefarious long-term plan.

What is a stalking horse candidate?

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 Horsebid com legit?

Horsbid,LLC is America’s premier online horse auction, your trusted source for buying top quality horses. We are here to make your experience of buying your dream horse safe and simple.

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