Quote:
Originally Posted by FlamesAddiction
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).
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Problem with this argument is, it was turned into a private secret sale, disguised as an auction. They went about it the illegal way. They ignored the higher bidder on a cash auction and has to be approved by the judge and now the judge is not happy.