Cahill Article on Bankruptcy Sale Stalking Horses Published in The Bankruptcy Strategist

Christopher Cahill’s “Stalking Horse Bidder in Section 363 Sales: Benefactor or Predator?” appears in the May 2014 edition of The Bankruptcy Strategist.  Cahill contrasts the common view of the “stalking horse” bidder as a benefactor of stakeholders, for it enhances the market for the sale of the debtor’s assets as a going concern in a section 363 sale, with the term’s original meaning of predatory ruse.  Cahill reviews some circumstances in which a stalking horse bidder may exploit its key role by becoming more predator than benefactor, in order to suppress its purchase price or for other objectives.