GREY:NEVDQ - Post by User
Comment by
rickwayne1982on Sep 05, 2024 12:36pm
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Post# 36210093
RE:RE:Competitive bidding is the right and smart way
RE:RE:Competitive bidding is the right and smart wayWhat safeguards NCU from receiving low ball offers is the fact that Moelis has so many interested parties involved, a minimum floor bid and hard court-approved deadlines to be met. Collusion would be easier to achieve with few parties involved which would be harmful to stakeholders as buyers want to buy as cheaply as possible.
With so many interested parties, and no one knowing who is potentially bidding (Until bid notification Sept 9, 2024), it leaves the door wide open for some monster bids to be submitted.
Bidders know that low balling an offer may not get them selected to the auction. If I understand correctly, the debtors (in consultation with their lawyers/ advisors) get to select among the best bids. Simply bidding over the SHB doesn't give you carte blanche to attend the auction. If that was the case, every bidder would simply bid slightly above the SHB and wait to find out what everyone else bid before placing a more competitive bid at the auction. You know how freaking long that would take? The best bids go to auction.
The mastermind behind this is a genius.