Cancellation of Auction and Designation of Stalking Horse Bidder as Successful Bidder (SDNY) Notice

This legal template relates to the cancellation of an auction process and the designation of a "Stalking Horse Bidder" as the successful bidder. The template is designed to be used under the jurisdiction of the United States of America, specifically the Southern District of New York (SDNY).

In the context of bankruptcy proceedings or distressed asset sales, an auction is often conducted to determine the highest bidder for the assets or property involved. However, there are instances when unforeseen circumstances arise, leading to the cancellation of the auction. This template serves as a formal notification under USA law to inform all relevant parties about the cancellation and the subsequent selection of a "Stalking Horse Bidder" as the winning bidder.

A "Stalking Horse Bidder" is a term used to describe a qualified bidder who has been pre-selected by the debtor or entity overseeing the sale process. This bidder is usually chosen based on their ability to provide a baseline or minimum offer, ensuring a reasonable starting point for subsequent bidding. If the auction is canceled, the Stalking Horse Bidder is typically granted a preferred status and given an opportunity to negotiate a revised bid or finalize the acquisition on the terms initially proposed.

This legal template provides a framework for the notification process, incorporating the necessary legal language and requirements as mandated by USA law and the jurisdiction of SDNY. It may include details such as the reasons for the cancellation, the identity of the Stalking Horse Bidder, the revised terms or conditions, and the timeline for the next steps in the process.

Utilizing this template can help ensure compliance with legal procedures, transparency in communications, and fair treatment of all relevant parties involved in the auction cancellation and subsequent designation of the Stalking Horse Bidder as the new successful bidder.