Judicial Concerns in Allowing Late-Upset Bids

In the event of a sale or auction, such as one of an estate, late bids are legal in the eyes of the law. However, a recent article co-written by Insolvency & Restructuring partner Dania Slim and associate Alana Lyman refers to late bids as a "double-edged sword," as the tension between value-maximization and the integrity of the process is a line that the courts repeatedly walk.

That is because they may increase value to the estate but may also damage parties' expectations and ultimately undermine the debtor's reorganization prospects.