Local Rule RULE 6004–1: Use, Sale, or Lease of Property

RULE 6004–1 Use, Sale, or Lease of Property

(a) Content of Motion or Notice. All motions of proposed use, sale, or lease of property not in the ordinary course of business filed under 11 U.S.C. § 363 (a "Sale Motion") and all notices of a proposed use, sale, or lease of property under 11 U.S.C. § 363(a) shall contain the following (the "Sale Terms"), as applicable: (1) a description of the property to be sold; (2) if relied upon by movant, a valuation of the asset proposed to be sold and the basis thereof (i.e., appraisal, brokers price opinion, schedules, comparable market analysis); (3) the proposed purchaser's identity; (4) the relationship, if any, between the proposed purchaser and the debtor, the trustee, or any other parties in interest; (5) the terms and conditions of the proposed sale, including the price and all contingencies; (6) whether the proposed sale is free and clear of liens, claims or interests, or subject to them, and a description of all such liens, claims, or interests; (7) whether the proposed sale is subject to higher and better bids including whether the debtor intends to seek approval of auction procedures; (8) a brief description of any and all marketing efforts related to the asset proposed to be sold; (9) a statement of all consideration to be received by the estate, including payment terms; (10) a list of any estimated fees, other costs of sale, and administrative and professional fees incurred in connection with the proposed sale; (11) if authorization is sought to pay a commission, the identity of the auctioneer, broker, or sales agent and the amount or percentage of the proposed commission to be paid; and (12) a description of the estimated or possible tax consequences to the estate, if known, and how any tax liability generated by the sale of the property will be paid.

(b) Notice. A Sale Motion shall be accompanied by a notice of opportunity to object and/or hearing (the "Notice of Sale Motion"). If a copy of a Sale Motion is not served on all creditors and parties in interest with the Notice of Sale Motion, then the Notice of Sale Motion shall contain the Sale Terms in addition to the requirements of Local Bankruptcy Rule 9013–1.

(c) Requests for Waiver of Bankruptcy Rule 6004(h) 14-Day Stay. Any motion seeking a waiver of the 14-day stay under Bankruptcy Rule 6004(h) shall state with specificity the grounds for the relief sought.

(d) Report of Sale. Unless otherwise ordered by the Court, the report of sale required by Bankruptcy Rule 6004(f)(1) shall be filed and served no later than twenty-one (21) days after the date of the sale of any property not in the ordinary course of business.