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When to Use a 'Stalking Horse' Agreement

A debtor has a fiduciary duty to maximize the value of the assets of its estate. When selling assets of a bankruptcy estate, the process usually begins with an extensive marketing process. As a result of extensive marketing, a debtor can find itself actively negotiating with numerous potential purchasers. While most marketing periods end with a court-approved auction, it has become commonplace for the debtor to enter into the auction process with a "stalking horse" agreement in place.

20 minute readJanuary 01, 2004 at 08:14 AM
By
Adam C. Rogoff
Deborah Piazza
When to Use a 'Stalking Horse' Agreement

A debtor has a fiduciary duty to maximize the value of the assets of its estate. When selling assets of a bankruptcy estate, the process usually begins with an extensive marketing process.

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