Quote:
Originally Posted by calgarygeologist
It seems like common sense, and non partisan, that the sale should be awarded to the highest bidder unless that party can't put up the cash for the sale or it is some sort of asset that can't be sold to certain parties.
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That's not always how it works in corporate bankruptcies though.
In some auctions, the first party to reach a minimum amount set by the debtor wins the auction. I believe the term is "stalking horse bid". I would not be shocked if the debtor, in this case Alex Jones, set the minimum winning bid low expecting one of his buddies to reach there first only to have The Onion come in and ruin his plan.
The debtor can typically decline the stalking horse bid winner if higher bids come in, but I think those rules have to be set before the bankruptcy auction starts and a judge has the authority to overrule. I am not completely sure though. The bidder would also need to show that they have the money to support the bid (like you can't win the bid, then go looking for the money later even if you know you could scrape it together).