When a public auction is run prior to or after the opening of the liquidation phase, the bid selected by the monitor during the preparation phase should be used as an initial bid (stalking horse bid) for the purposes of the auction. In the preparation phase, the debtor should be able to offer incentives to the stalking horse bidder by agreeing, in particular, to the reimbursement of expenses or break-up fees if a better bid is selected through the public auction. Member States should, nevertheless, ensure that such incentives are proportionate and do not deter other potentially interested bidders from participating in the auction.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
