Notice Of Sales

Information Regarding Notices of Sale


The Bankruptcy Court has provided information on all pending Notices of Intended Sale filed in bankruptcy cases in the District of Massachusetts. Under the Bankruptcy Code (Title 11, United States Code, §101 et seq.), and the Federal Rules of Bankruptcy Procedure, all sales are noticed to the creditors in the case, all interested parties, and anyone who has filed a written request for all notices. The purpose of posting this information is to increase public awareness of bankruptcy sales and to generate increased sale participation.

The Notice of Sale filed in each case specifies the terms and conditions of the sale, the procedure you follow to participate, how to make a higher offer how to object to the sale, and most importantly, the time within which you must act. Please contact the person who filed the Notice of Intended Sale (noted as "the filer") for additional information and/or a copy of the Notice of Intended Sale. You may also view the Notice of Intended Sale in either of the district's Pending Sales Books, which are maintained at the Bankruptcy Court offices in both Boston and Worcester. Also, you may request a copy through the mail by sending a $15.00 check plus $.50 per page copy charge payable to "Clerk, U.S. Bankruptcy Court" at the court office where the case is pending (Notices of Intended Sale are usually 2 pages in length). Note that with mailing time and search time, you may not receive a response for 1-2 weeks, which could impact your ability to act on the sale timely

For general information on sale procedure in the District of Massachusetts, please refer to the following: Local Rules 2002-5 Content of Notices of Sale and 6004-1 Sale of Estate Property, and Official Local Form 2A Notice of Intended Private Sale and Form 2B Notice of Intended Public Auction.


2002-5 Content of Notices of Sale


  1. Subject to the requirements of Fed. R. Bankr. P. 6004 and MLBR 6004-1, a notice of proposed private sale of property shall: conform substantially to Official Local Form 2A suited to the particular circumstances of the case; include the name and address of the purchaser; the consideration for the purchase; the time and place of the proposed sale; the terms and conditions of the proposed sale; the time fixed for filing higher offers and/or objections to the proposed sale; the hearing date fixed by the Court; a general description of the property to be sold; an itemized list of the asset or assets; the relationship, if any, of the buyer and the seller; a statement as to the fair market value of the property to be sold; the opinion of any professional appraiser or broker as to the value of the property to be sold, if available; a statement of the basis for the seller's opinion that the purchase price is reasonable; and a statement as to the marketing efforts undertaken by the seller.
  2. Unless the Court orders otherwise, the estate representative shall give not less than twenty (20) days written notice by mail to all creditors and interested parties of any sale or use of estate assets out of the ordinary course of business. The notice shall state that any objection, higher offer, or request for hearing must be filed and served within the time established by the Court, which time shall be conspicuously stated in the notice.

RULE 6004-1. SALE OF ESTATE PROPERTY

  1. Private Sales
    1. Motion to Sell
      1. Every notice of private sale shall be accompanied by a motion for authority to sell, whether or not the sale is to be free and clear of liens or interests. The motion shall identify the holder of any lien or interest, shall state the efforts made by the estate representative in exploring the market for the property, shall state whether the proposed sale is to be free and clear of liens or interests, shall seek approval of any proposed distribution of proceeds, and shall state why a private sale, rather than a public sale, is in the estate's best interest. If all or substantially all of a chapter 11 debtor's assets are to be sold, the motion shall state why the sale is proposed under 11 U.S.C. § 363 rather than through a chapter 11 plan and shall contain a practical and abbreviated equivalent of the adequate information required in a disclosure statement to a chapter 11 plan.
      2. By motion served on the debtor or debtor's counsel, the United States trustee, any secured creditor or its counsel, the 20 largest unsecured creditors, the members and counsel of any approved creditors or equity committee and any attorneys who have filed appearances in the case, the estate representative:
        1. may obtain prior approval of any term of the proposed sale; and
        2. must obtain prior approval from the Court of any terms for the proposed sale protecting the initial proposed purchaser, including the amount of a break-up fee or the minimum increase required for a higher offer, unless (1) the proposed breakup fee does not exceed the lesser of 5% of the proposed original purchase price or $50,000 and is subject to final court approval upon application by the bidder; and (2) the minimum increase required for a higher offer does not exceed 5% of the proposed original purchase price.
    2. Contents of Notice of Sale
      1. The notice of private sale shall be substantially similar to MLBR Official Local Form 2A. The proposed notice shall be attached to the motion to sell filed with the Court and shall contain blank spaces for the deadline for filing objections and higher offers, as well as a blank space for the date and time of the hearing on the sale. Higher offers, together with any requisite deposit required by the notice, shall be submitted to the estate representative by the deadline established by the Court and a copy of any higher offer shall be filed with the Court. The notice shall state whether the sale shall be free and clear of liens or interests, the method of auction proposed by the estate representative, including without limitation by sealed bid or open auction, and that the method for auction shall be determined by the Court at or prior to the hearing on the proposed sale. Upon receipt of the proposed notice, the Clerk shall assign a deadline for filing objections and making higher offers, schedule a hearing date, and transmit such dates to the moving party by telephone or such other means as the Clerk deems appropriate. The estate representative shall then serve the motion to sell and the completed notice as required by subsection (a)(3) of this rule.
      2. Unless the movant requests or is required to obtain advance approval of the form of notice and/or the terms of the proposed sale pursuant to subsection 2(B) of this rule, the proposed notice need not be served on any party.
    3. Service of Motion to Sell and Completed Notice
      1. Unless the Court orders otherwise, the motion to sell and the completed notice of proposed private sale shall be served upon the following parties: all creditors, parties in interest, including the United States trustee, parties who have filed appearances and requested service of all pleadings and notices. A copy of the completed notice should also be served on parties regarded by the estate representative as potential purchasers, including, if appropriate, dealers in the property and competitors of the debtor. The motion and completed notice shall be served no less than twenty (20) days (plus such additional time as may be provided in Fed. R. Bankr. P. 9006(f)) prior to the deadline for filing objections or higher offers. The motion to sell need not be served on any party until the Clerk has provided the information necessary to serve the completed notice.
      2. The estate representative shall file a certificate of service within seven (7) days of service of the motion to sell and the completed notice.
    4. Court Approval of Sale
      1. If there are no objections or higher offers timely filed with the Court by the deadline, the Court may approve the sale without holding the scheduled hearing.
      2. Within three (3) days of receipt of a written request by the debtor, estate representative, or other party in interest, the Clerk shall issue a certificate of no objections concerning the sale of property of the estate.
  2. Public Auctions
    1. Court Authorization
      The estate representative, with prior Court approval, may sell estate property by public auction. Subsequent confirmation by the Court of the auction is not required unless such confirmation is a condition of the Court's approval. The notice of public sale shall be substantially similar to MLBR Official Local Form 2B. The estate representative shall file a motion to sell the estate assets, and state why a public, rather than a private, sale is requested. Any auction advertisement placed by an auctioneer or estate representative shall conspicuously state the bankruptcy case name and number. The proposed notice shall be attached to the motion to sell but need not be served on any party. Upon receipt of the proposed notice, the Clerk shall assign a deadline for filing objections, fix a hearing date, and transmit such dates to the moving party by telephone or such other means as the Clerk deems appropriate. The estate representative shall then serve the motion to sell and the completed notice in the manner provided in subsection (a)(3) of this rule or other order of the Court and shall file a certificate of service within seven (7) days of service.
    2. Restrictions
      An auctioneer shall not introduce non-bankruptcy estate items at an auction without the Court's prior approval. An auctioneer employed by an estate representative shall not bid on property of the estate. No buyer's premium shall be charged. Failure to comply with this subsection shall result in denial of all compensation and/or the issuance of sanctions.
    3. Qualification of Auctioneer
      1. An auctioneer shall not be authorized to conduct a public auction of property of an estate without first obtaining the Court's specific prior approval of the auctioneer's employment, filing with the Court a bond in an amount fixed by the United States trustee, and furnishing the United States trustee with a copy of that bond. The bond shall be conditioned on the faithful performance of the auctioneer's duties and the auctioneer's accounting for all money and property of the estate that comes into his or her possession.
      2. To avoid the necessity of filing separate bonds for smaller auction sales, the auctioneer may file with the Court a blanket bond similarly conditioned in a base amount fixed from time to time by the United States trustee to cover various cases in which the auctioneer may act. The auctioneer shall also provide the United States trustee with a copy of the blanket bond. If at any time the value of goods of various estates in the auctioneer's custody exceeds the amount of the blanket bond, the auctioneer shall obtain a separate bond or bonds so that the full amount of all goods of various bankruptcy estates in the auctioneer's custody is covered.
      3. As a condition of the employment of an auctioneer in any bankruptcy estate, the auctioneer shall file a statement under the penalty of perjury that all goods of bankruptcy estates in the auctioneer's custody are fully covered at all times by separate bonds or blanket bonds or both. The auctioneer shall also state (i) his or her qualifications, (ii) where the auctioneer is licensed, (iii) whether the auctioneer is in good standing in all jurisdictions in which he or she is licensed, and (v) whether the auctioneer is subject to any disciplinary proceedings or has been subject to any disciplinary proceedings in the five years preceding the filing of the application.
    4. Attendance at Auction Sale
      The estate representative or a representative of the trustee shall be present at an auction sale.
    5. Auctioneer's Compensation and Expenses
      1. The auctioneer shall file and serve an application for compensation and reimbursement of expenses setting forth the amount requested, services rendered, time spent, and actual expenses incurred as required by Fed. R. Bankr. P. 2016(a).
      2. Auctions of Personal Property
        Unless otherwise ordered by the Court, with respect to auctions of personal property, the auctioneer's compensation shall not exceed the following percentages of gross proceeds:
        1. 10% of the first ten thousand dollars ($10,000) or part thereof;
        2. 7% of the next ten thousand dollars ($10,000) or part thereof;
        3. 6% of the next thirty-five thousand dollars ($35,000) or part thereof; and
        4. 5% of the balance.
      3. Real Estate Auctions
        Unless otherwise ordered by the Court, with respect to sales of real property, the auctioneer's compensation shall not exceed the greater of:
        1. 10% of the first fifty thousand dollars ($50,000) realized in excess of the amount of encumbrances, plus 2 ½ % of the balance of the equity; or
        2. $500.00
      4. Auction Expenses
        The auctioneer shall be reimbursed for actual and necessary expenses incurred in connection with an auction, including advertising, if the auctioneer has obtained approval by the Court in advance of the auction for these expenses. Unless otherwise ordered by the Court, the auctioneer shall not be reimbursed for any overhead expense associated with the auction, including labor, cleaning, setting up, lotting, and tagging.
  3. Internet Auction Mechanisms
    1. With prior Court approval, after appropriate notice as required by Fed. R. Bankr. P. 2002 (a), the estate representative, or an auctioneer or other professional authorized by the Court to sell estate property, may sell any asset or assets of the estate by public auction through the use of an automated Internet auction, listing, or brokerage mechanism ("Internet Auction Mechanism").
    2. In any motion requesting such approval, the estate representative must state:
      1. The name and uniform resource locators (URL) of the proposed Internet Auction Mechanisms;
      2. Why the estate representative believes that use of the Internet Auction Mechanism is in the best interests of the estate;
      3. Whether the estate representative has or any party in interest is known to have any connections with the proposed Internet Auction Mechanism or any expected bidder;
      4. All fees associated with use of the Internet Auction Mechanism;
      5. Whether use of the Internet Auction Mechanism is subject to rules, policies, procedures or terms or conditions and, if so: (i) provide either a copy thereof or the URL at which they can be examined and (ii) summarize any such rules, policies, procedures or terms or conditions that are likely to result in any restrictions on bidding for the asset(s) proposed to be sold or limitations on the estate representative in offering asset(s) for sale with full or partial reserve or otherwise controlling the determination to sell each asset;
      6. The mechanism for payment to the estate; and
      7. That the Internet Auction Mechanism will not provide auction services or any other services beyond access to its automated on-line services and related customer support.
    3. Any such motion must request authority for the estate representative to (a) comply with any rules, policies, procedures, or terms or conditions of the Internet Auction Mechanism and enter into any required agreements, (b) consummate such sale, and (c) pay any and all fees associated with use of the Internet Auction Mechanism, each without further order of the Court.
    4. Nothing in this rule shall limit applicability of the requirements of Local Rule 6004-1(b) with respect to any auctioneer hired by an estate representative to provide services beyond access to an Internet Auction Mechanism.
    5. Unless the Court orders otherwise, a listing placed on an Internet Auction Mechanism shall state the bankruptcy case name and number and that the sale procedure has been approved by the United States Bankruptcy Court for the District of Massachusetts.
  4. Sales of Personally Identifiable Information
    1. In the event that an estate representative shall move to sell personally identifiable information as defined in 11 U.S.C. § 101(41A), the motion and any notice of sale thereon shall, in addition to those requirements set forth in Paragraphs (a) and (b) of this rule, conspicuously describe the type(s) of personal identifiable information which are proposed to be sold (without disclosing thereby the content of such information), why the sale of such information is advantageous or necessary and what private agreements, federal laws and/or state laws purport to restrict the sale or use of such information.
    2. Upon the filing of a motion under subparagraph (1) above, the movant shall file a separate motion seeking expedited determination and requesting an order directing the United States trustee to appoint a consumer privacy ombudsman under §332. Unless otherwise ordered, the United States trustee shall seek the appointment of the ombudsman within three (3) court days of the entry of any such order. The ombudsman shall file a report with his or her recommendations and the basis therefore within seven (7) days of his or her appointment, subject to such enlargement of time as the Court may allow on request of the ombudsman made prior to the expiration of the deadline.
  5. For the purposes of this rule, the term estate representative shall include a chapter 7 trustee, chapter 11 trustee, chapter 11 debtor in possession, chapter 12 trustee, and chapter 13 debtor.