The "Stalking Horse" is a term of art often used in the
bankruptcy court to describe the initial bidder for a bankrupt company's
assets. Typically, a company in bankruptcy will reach a deal with
an outside bidder that wants to acquire all or substantially all of its
assets. Prior to...
Trustees, like debtors-in-possession, owe a fiduciary
duty to their constituents, but are protected by the business judgment rule. Two
recent cases illustrate how a trustee's discretion can be exercised depending
upon which rule is given primacy. In In re Tres-Ark,Inc., No.
09-12589 (Bankr. W...