- 1 Why is it called a stalking horse bid?
- 2 What is a stalking horse takeover?
- 3 Is a stalking horse bid legally binding?
- 4 What is a stalking horse apa?
- 5 What is a stalking?
- 6 What is seller sniping stalking method?
- 7 What is a stalking house?
- 8 How does a 363 sale work?
- 9 What is a topping fee?
- 10 What is a 363 sale definition?
- 11 What is a credit bid?
- 12 What is a debtor in possession account?
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.
What is a stalking horse takeover?
What is a stalking horse bid? A stalking horse bid is an initial proposal to buy an asset from a distressed company (most often one that is bankrupt or in bankruptcy protection). Usually, the company or its receiver will select a buyer willing to make an offer.
Is a stalking horse bid legally 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 apa?
Stalking Horse APA means that certain Asset Purchase Agreement by and among the Debtors, the Lender and the Prepetition Secured Note Lender, executed on or about the Petition Date, and submitted as an exhibit to the Sale Motion.
What is a stalking?
Stalking is behavior wherein an individual willfully and repeatedly engages in a knowing course of harassing conduct directed at another person, which reasonably and seriously alarms, torments, or terrorizes that person. Stalking involves one person’s obsessive behavior toward another person.
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.
What is a stalking house?
In its most basic form, house stalking might simply mean driving past a favored house from time to time and craning one’s neck to see its architectural details or the way it sits on its perfectly manicured grounds.
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 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.
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?
Credit bidding is a mechanism, enshrined in the US bankruptcy legislation, whereby a secured creditor can ‘bid’ the amount of its secured debt, as consideration for the purchase of the assets over which it holds security.
What is a debtor in possession account?
A debtor in possession (DIP) is a person or corporation that has filed for Chapter 11 bankruptcy protection but still holds property to which creditors have a legal claim under a lien or other security interest. The DIP must also keep precise financial records, insure any property, and file appropriate tax returns.