The "Devil's Dictionary" is a quick-reference guide for commercial lenders and other restructuring professionals. In this series, we highlight many of the buzz words found in the Dictionary and used in today's bankruptcy arena.

STALKING HORSE: The use of the term in the bankruptcy context does not carry the connotation of “decoy” or “deceit” that it carries outside of bankruptcy. It refers instead to the initial proposed purchaser in a 363 auction process whose deal with the debtor is subject to higher and better offers. The stalking horse usually negotiates a break-up fee and other bid protections to compensate itself in case it is not the successful purchaser of the debtor’s assets. 

See also 363 Auction, 363 Sale, Bid Protections, Break-Up Fee, Topping Fee.


The "Devil's Dictionary" is an excellent reference tool that reflects the collective wisdom of its four authors, Brett Anders, Jim Bird, David Ferguson, Dan Flanigan, and digital editor, Christopher Ward, who have a combined total of more than 130 years working in the forefront of real estate and other commercial finance, loan enforcement, financial restructuring and bankruptcy law.