Core Tip: Bankrupt Twinkies and Hostess Brands says it expects to establish up to six ‘stalking horse’ bidders for its iconic bakery brands when bids are presented to the bankruptcy court.
A stalking-horse bid is an initial bid on a bankrupt company's assets from an interested buyer chosen by the bankrupt company from a pool of bidders that sets the bar so other bidders can't low-ball the purchase price.
Once the stalking horse has made its bid, other potential buyers may submit competing bids.