Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
By Staff Reporters
***
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’t underbid the purchase price.
CITE: https://www.r2library.com/Resource
The term “stalking horse” originates from a hunter trying to be concealed behind either a real or fake horse.
- A stalking horse bid is an initial bid on the assets of a bankrupt company, setting the low-end bidding bar so that other bidders can’t underbid the purchase price.
- Other buyers can submit competing offers following the stalking horse bid.
- A stalking horse bidder is afforded various incentives, such as expense reimbursements and breakup fees.
***
On December 17th, 2023, after defaulting on a $617 million loan, Ebix, Inc of Atlanta Georgia, declared Chapter 11 bankruptcy. Then, Ebix Reaches “Stalking Horse” Sale Agreement for Life Insurance and Annuity Business with Zinnia to Ensure Successful Recapitalization Efforts in 2024.
COMMENTS APPRECIATED
Thank You
***
***
Share this:
Filed under: "Ask-an-Advisor", Financial Planning, Funding Basics, Glossary Terms, Investing | Tagged: EBIX, stalking horse, stalking horse bid, stalking horse sale, zinnia |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Leave a comment