What is the stalking horse strategy?
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.
What is the meaning of the 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.
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.
What is a stalking horse sales process?
In the context of section 363 sales in bankruptcy, a stalking horse is a bidder used to set the purchase price floor so other bidders can know the minimum to bid for the target company. The opportunity to negotiate the basic contract terms and structure of the transaction and the bidding procedures.
What is a stalking horse apa?
Stalking Horse APA means that certain Asset Purchase Agreement, dated as of March 16, 2020, executed by the Stalking Horse Bidder, as buyer, for the sale of certain of the Debtors’ assets to the Stalking Horse Bidder, a copy of which has been filed [Docket No.
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.
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 does it mean to take up the cudgels for someone?
Definition of pick/take up the cudgels for : to fight in defense or support of (someone or something) She took up the cudgels for women’s rights.
Is 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.
What is credit bidding?
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).
What does made his pile mean?
to earn a large amount of money: He made a pile selling computers and retired by the time he was 40. Large amounts of money. a small fortune idiom.
What makes a stalking horse offer so good?
A stalking horse offer is in a better position to help craft any deal This can include specific assets the debtor owns, lien position of outstanding creditors and any contracts the debtor is under which may or may not be included in the sale
How does a stalking horse bidding agreement work?
Once the bankruptcy court approves the auction, the debtor enters into a binding stalking-horse agreement with the first interested buyer who sets the floor price for other bidders. The first bidder secures the opportunity to perform due diligence
What does a stalking horse mean in bankruptcy?
An experienced real estate investor is probably familiar with the term “stalking horse” as it relates to bidding on and buying listed assets of a debtor currently in Chapter 11 bankruptcy. A stalking horse bid is essentially the first bid on a debtor’s assets in advance of any formal auction
Who is the loser in the stalking horse?
The stalking horse is an exercise in assessing accurately the degree of risk, so that a full-blooded challenge is only mounted by the main party when there is a real likelihood of success. The loser in the exercise appears to be the stalking horse.