There is a surge in bankruptcy cases across the globe as companies are fighting for their survival in a situation of economic turmoil owing to COVID-19. Companies are adopting the 363 Sale process to either liquidate the entire business or reorganize and make a fresh start post-bankruptcy. The portfolio managers and the credit research analysts are busy doing extensive credit analysisand distressed debt analysis to calculate the recovery valuation for the company in distress. In the liquidation process, one important yet ignored entity is the Stalking Horse Bidder. A stalking horse bidder, who is chosen by the company and approved by bankruptcy court sets the floor price for an auction of the debtor’s assets.
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