Court Approves Stalking Horse Agreement in Armstrong Bankruptcy

Lancaster, PA, June 1, 2022- On May 31, the bankruptcy court for the district of Delaware approved the company’s entry into a stalking horse agreement.

“A stalking horse bidder is an initial bid on the company’s assets that is set before an auction to provide a low-end bid, in effect a reserve bid that aims to maximize value of the assets. Sometimes the stalking horse bidder wins. If it doesn’t, an agreement can set a break-up fee,” explains Investopedia. Other buyers can submit competing offers following the stalking-horse bid.

According to the docket, the schedule of events is as follows,

“Important Dates and Deadlines

June 14: bid deadline for North American assets

June 16 and 27: auction

June 22: sale hearing

June 23: bid deadline for Australia and China assets