The minimum price at which a seller of property will accept a bid at an auction.
At an auction, the price below which the owner of the item may refuse to sell. For example, if the reserve price is $1,000, and bidding does not rise above $900, the owner may withdraw the item from the auction. The reserve price is also called the upset price.
Once the assets of the railroad were protected by the "equitable umbrella" of the court, the debtor's ability to discourage holdouts turned on the difference between the upset price and the value of the new securities offered under the plan.
According to Kalili, over 600 bidders were registered for the 120 erven (potentially 5 prospective bidders per erf) up for sale and from the onset the upset price was quickly forgotten as the first lot went for N$700 per m2 or N$560,000 in total.