Notice of Cancellation of Auction and Designation of Successful Bid
(Bankr. S.D.N.Y.)

Summary

This notice of cancellation of auction and designation of successful bid template is for use in a bankruptcy case filed in the bankruptcy court for the Southern District of New York. This template includes practical guidance, drafting notes, and an optional clause. In a typical Section 363 sale, the debtor or trustee selects an initial bidder as the stalking horse bidder. The stalking horse bidder and the debtor or trustee will execute an asset purchase agreement also referred to as a stalking horse agreement. The stalking horse agreement sets the minimum floor of the purchase price and provides that the stalking horse bid will be subject to higher or better bids that may be received at a subsequent auction. 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/or 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. The bid procedures typically allow the debtor to cancel the auction if the debtor does not receive any qualified bids. In such cases, the debtor must file and serve a notice that the auction has been cancelled and that the debtor will seek court approval of the sale to the stalking horse bidder. The relevant statutes and rules are as follows (1) Sections 363(b) and 365 of the Bankruptcy Code; (2) Bankruptcy Rules 2002 and 6004; (3) Rules 6004-1 and 6005-1 of the Local Bankruptcy Rules of the Southern District of New York; and (4) the Guidelines for the Conduct of Asset Sales by the Court (Guidelines). Counsel should also check case management orders entered in the case for specific sale and/or notice requirements. For more information, see Section 363 Sale Procedures, Hearings, Orders, and Appeals. For related templates, see: • Auction and Bid Procedures (Bankr. S.D.N.Y.) • Sale Motion (Bankr. S.D.N.Y.) • Bid Procedures Order • Notice of Auction and Sale Hearing (Bankr. S.D.N.Y.) • Notice of Assumption and Assignment (Bankr. S.D.N.Y.) • Notice of Successful Bidder • Sale Order • Asset Purchase Agreement (Bankruptcy)