Bid Procedures Objection

Summary

This template is for use by a party objecting to the bid procedures proposed in connection with the sale of a bankruptcy debtor's assets. This template includes practical guidance and drafting notes. Court approval must be obtained for sales outside the ordinary course of business under Section 363(b) of the Bankruptcy Code. In a typical Section 363 sale, the debtor or trustee, as seller, will file a motion seeking two separate hearings and two separate orders. The first hearing will be to obtain a bid procedures order approving the proposed bid procedures to be used at the auction and the schedule for deadlines to submit competing bids and objections to the sale. The second hearing would occur after the auction and the seller will present to the court the highest or best offer received at the auction and seek approval of such sale and entry of the sale order. As part of this process, notice must be given of the auction and the sale hearing (after approval of the bid procedures order and as per its terms). Creditors can object to the motion and the procedures set forth therein. The debtor will typically work with the objecting parties to resolve those objections prior to the hearing on the sale procedures. If the parties do not work this out, the court will hold a hearing. This template objection is primarily drafted as an objection to a debtor's proposed bid procedures. Note that after the auction and before (or at) the sale hearing, the bid procedures also typically allow parties to file objections specific to the actual successful bidder. For more information, see Section 363 Sale Procedures, Hearings, Orders, and Appeals. For related templates, see Cure Objection, Sale Motion, Auction and Bid Procedures (Debtor), Asset Purchase Agreement (Bankruptcy), Bid Procedures Order, and Sale Order.