You are here

B-6004-2. PRIVATE SALE

(a)   “Private Sale” Defined

For the purpose of this rule, a “private sale” is defined as a sale to a specific entity on terms that are fixed at the time the Motion to Sell is filed, with no consideration of competing bids contemplated.  

(b)   Contents of Motion:  All Chapters

Any Motion to Sell by private sale shall identify:

(1)     the property to be sold;

(2)     the prospective purchaser ("Prospective Purchaser");

(3)     the sales price and an estimate of the net proceeds to be received by the estate (including a deduction for any exemption);

(4)     a brief summary of all material contingencies to the sale, together with a copy of the agreement, if available;

(5)     a description of the manner in which the property was marketed for sale, and a description of any other offer to purchase;

(6)     a description of any known relationship between the Prospective Purchaser and its insiders and the Debtor and its insiders or the trustee;

(7)     a statement setting forth any relationship or connection the trustee or the Debtor (including its insiders) will have with the Prospective Purchaser or its insiders after the consummation of the sale, assuming it is approved;

(8)     a disclosure if the property to be sold contains personally identifiable information and, if so, the measures that will be taken to comply with 11 U.S.C. §363(b)(1); and

(9)     the names of the lien or interest holders to the extent such names are known, if the proposed sale seeks to sell property free and clear of liens or other interests pursuant to 11 U.S.C. § 363(f).

(c)   Contents of Motion: Additional Requirements in Chapter 11 Cases

Any Motion to Sell by private sale in a Chapter 11 case that proposes the sale of all or substantially all of the Debtor's assets shall include, in addition to the requirements in subparagraph (b), the following:

(1)     if schedules have not been filed by the Debtor, a summary of the Debtor's debt structure, including the amount of the Debtor's secured debt, priority claims, and general unsecured claims; and

(2)     if a creditors' committee, or its equivalent, existed pre-petition, the identity of the members of the committee and the companies with which they are affiliated and the identity of any counsel.  

(d)   Notice

(1)     Distribution; Contents; Certificate of Service Generally.

Unless otherwise ordered by the Court, the movant shall distribute notice of any hearing or of any deadline to object to a Motion to Sell, as determined by subparagraphs (2) and (3) below. The notice shall contain all of the information required by subparagraph (b) and (c) of this rule. The movant shall file a certificate of service that complies with S.D.Ind. B-9013-2. The motion, notice, and certificate of service may be combined into one document. A sample combined Motion to Sell, Notice, and Certificate of Service is available on the Court's website.

(2)     Chapter 7, 12, and 13 Cases

Unless the Court by separate order shortens the notice period, in a Chapter 7, Chapter 12, or Chapter 13 case, the movant shall distribute notice that provides twenty-one (21) days after the date of service for objections to be filed.  

(3)     Chapter 11 Case

In a Chapter 11 case, the movant shall contact the courtroom deputy to obtain direction as to whether the Court desires a notice with opportunity to object to the Motion to Sell or a notice of the hearing date.  The movant shall distribute the notice and file a certificate of service.

(e)   Report of Sale

No later than fourteen (14) days after a private sale has been completed, the movant shall file a report of sale pursuant to Fed.R.Bankr.P. 6004(f)(1).