Auction and Bid Procedures
(Debtor)

Summary

This auction and bid procedures template can be used for a sale that occurs through an auction process under Section 363 of the Bankruptcy Code. This template includes practical guidance, drafting notes, alternate, and optional clauses. Parties use bid procedures and hold an auction to ensure that the sale process is efficient and well-organized and that the debtor's estate, and thus its creditors, receive the greatest possible return from the sale of the assets. This template may be modified to accommodate certain factors that can vary from case to case. However, the sale process will generally involve the same basic set of conditions and requirements included in this template regardless of whether the sale is to take place pursuant to a typical sale under Section 363 and an associated asset purchase agreement or pursuant to a plan of reorganization. For more information, see Section 363 Sale Procedures, Hearings, Orders, and Appeals, Conducting Section 363 Sales, and Selling Assets and Assigning Contracts and Leases in a Section 363 Sale. For related templates, see: • Bid Procedures Order • Sale Motion • Notice of Auction and Sale Hearing • Notice of Assumption and Assignment • Notice of Cancellation of Auction and Designation of Successful Bid • Notice of Successful Bidder • Sale Order • Asset Purchase Agreement (Bankruptcy)