TY - JOUR T1 - To Be or Not to Be JF - Trading SP - 105 LP - 110 VL - 2004 IS - 1 AU - Steven J. Reisman AU - Lynn P. Harrison, 3rd AU - Shabana N. Qaiser AU - Andrew M. Thau Y1 - 2004/03/20 UR - http://guides.pm-research.com/content/2004/1/105.abstract N2 - In the context of an asset sale by a debtor under the United States Bankruptcy Code, a “stalking horse” is the party that reaches an agreement with the debtor formulating procedures for the sale, and providing a minimum bid for those assets. The stalking horse generally negotiates for sale procedures that provide it with certain bidding advantages, and/or compensation if the stalking horse is unsuccessful in consummating the envisaged transaction. However, this agreement is subject to Bankruptcy Court approval. In two recent asset sales, the Delaware Bankruptcy Court has not honored such stalking horse agreements. This article discusses some strategic considerations to assess regarding the stalking horse concept generally and in light of these decisions. ER -