Why is it called a stalking horse bid?
The initial bidder with whom the debtor negotiates a purchase agreement is called the “stalking horse” bidder. The term is an old hunting term referring to either a real horse or an image of a horse (typically some type of screen) behind which a hunter would hide to conceal himself from, and get closer to, his prey.
What is stalking horse bid process?
A stalking-horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company will choose an entity from a pool of bidders who will make the first bid on the firm’s remaining assets. The stalking horse sets the low-end bidding bar so that other bidders can not underbid the purchase price.
What is a stalking horse in politics?
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 does a bidder do?
In a market, a bidder is a party offering to buy an asset from a seller at a specific price. A bidder can be an individual or organization, and the potential purchase can be part of a multiparty transaction or an auction. In most cases, the party selling the asset chooses the bidder who offers the highest price.
Is a stalking horse bid binding?
Serving as a stalking horse bidder has some risk. … For example, if no one shows up at the auction, the stalking horse may wonder if it overbid for the assets. Once the bankruptcy court approves the stalking horse agreement, it becomes binding on all parties and difficult, if not impossible, to renegotiate.
What does it mean to credit bid?
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).
How does credit bidding work?
With a credit bid, the lender bids the debt that the borrower owes. Basically, the lender gets a credit in this amount. The lender can bid the full amount of the debt, including foreclosure fees and costs, or it might bid less. … Often, though, the foreclosing lender is the high bidder at the foreclosure sale.
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. A DIP may continue to do business using those assets.
What does horse emoji mean?
Meaning of Horse Face Emoji
Horse Face emoji depicts the head of an animal in a cartoon-like manner. The horse is historically used by people as a means of transportation (its body is represented by Horse emoji, by the way).
What does calling someone a horse mean?
If “horse” and it didn’t sound negative, then it might be he’s describing you as having those qualities, like staying-power, durability, strength and determination. A horse has always been a beast of burden and when trained, obliging and biddable. It’s a term of admiration.
What happens if you bid at an auction and don’t pay?
More often than not, the unpaid items someone refused to buy are quietly returned to the original consignor, put into a future auction with a lower estimated value or are sold privately for a significant loss.
What items sell best at auction?
10 Best Types of Items to Sell at Auction
- Baseball and other sports memorabilia, especially from the 1960s and earlier. …
- Advertising signs, posters, and displays. …
- Gold coins, jewelry, silver coins, flatware and hollow ware. …
- Important historical memorabilia. …
- Antique and classic automobiles and motorcycles, and related memorabilia. …
- Paintings by listed artists.