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Recovery of Damages By Bankruptcy Bidders

The sale of a debtor's assets through a bankruptcy court supervised auction process has become more commonplace and, some theorize, under the amended law, may increase in popularity. Often, the process includes the use of a "stalking horse" agreement establishing a baseline of price and other terms for the sale of the assets. In return, the stalking horse bidder obtains certain bid protections (<i>ie</i>, break-up fees and/or expense reimbursements). At the close of the auction, either the stalking horse bidder either places the highest initial (or competing) bid or is outbid, maintaining a claim for the bid protections.

11 minute read January 26, 2006 at 09:48 AM
By
Adam C. Rogoff And Noah Falk
Recovery of Damages By Bankruptcy Bidders

The sale of a debtor's assets through a bankruptcy court supervised auction process has become more commonplace and, some theorize, under the amended law, may increase in popularity.

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