Stalking horse bid

Stalking horse bid

In bankruptcy proceedings, this refers to first bid for the companies assets. This is the bid to beat. If there are multiple bids, often there is a bankruptcy auction.

Stalking Horse Bid

1. In a corporate bankruptcy in which the corporation wishes or is required to sell its assets, an initial bid on those assets by a third party chosen by the corporation. This is done to ensure that the bankrupt corporation does not have to settle for unacceptably low prices for its assets.

2. More generally, a "trial balloon" in which a third party approaches a person or company inquiring about the possibility of a (usually hostile) takeover. The party actually asking about the takeover remains anonymous so as to protect its reputational risk in case the idea does not meet with favor.
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5 million stalking horse bid for a substantial portion of the assets.
8, 2013 bankruptcy filing, Furniture Brands International received debtor in possess financing from Oaktree Capital Management, which also provided a stalking horse bid on the parent of Thomasville and Lane furniture.
Popularly referred to as a stalking horse bid, the offer by the private equity firms serves as the minimum proposal for the business and could still be topped by others.
A portfolio company of Leading Ridge Capital Partners, Rugby acquired substantially all of the assets of Lumber Products through its stalking horse bid under Section 363 of the US Bankruptcy Code.
Borders intended for Najafi to be the stalking horse bid for an auction today.
RIM believes that such an offer would result in an extremely attractive price for Nortel creditors and value substantially in excess of the stalking horse bid made by Nokia Siemens Networks.
In bankruptcy cases, a stalking horse bid sets a threshold price so that other potential bidders can't low-ball the purchase price.
A stalking horse bid involves sale deals made before a bankruptcy auction, setting the minimum bid price that can be asked for a bankrupt company's assets.
As previously announced, Searchlight Capital Partners had submitted a stalking horse bid for the Digital Domain and Mothership assets in the amount of $15 million.
The new motion goes on to say that the auction should still take place with the Greenberg/Ryan group, yet again, willing to waive their exclusivity agreement while using the improved Asset Purchase Agreement as a stalking horse bid, and still include the $15 million "break-up fee", should the Greenberg.
The last bids made by the respective bidders prior to the adjournment of the auction will result in the Company realizing additional proceeds from the sale of assets when compared to each of the stalking horse bid set forth in the Asset Purchase Agreement entered into between the Company and the Saban Bidder as of April 25, 2012 and the Qualified Bid submitted by the Konami Bidder prior to the auction.
Aliens will have to seek bankruptcy court approval of Seneca's purchase agreement as the stalking horse bid and other bid procedures.