The purchase of assets from distressed entities typically begins with the submission of a term sheet to the debtor, followed by due diligence on both the asset and the distressed entity itself.

1. An Introduction to
Sale Procedures
Orders
BY SUZZANNE UHLAND

2. Sale Procedures Order
 The purchase of assets from distressed entities
typically begins with the submission of a term
sheet to the debtor, followed by due diligence
on both the asset and the distressed entity itself.
 Based on the content of the term sheet, the
parties involved then draft a document known
as a Sale Procedures Order.

3.  Defined as a general
road map for the
execution of the sale,
the Sale Procedures
Order often contains
provisions for an
auction-style process
following a diligence
period for bidders.

4. Court Hearing
 After both parties submit a Sale Procedures Order, the
court stages a hearing on the document.
 During this time, any creditors or interested parties can
comment on the Sale Procedures Order or express their
objections to the content of the document.
 Once the court approves the document, the auction
begins, with the first mover’s bid functioning as the initial
bid.
 Although auctions can last anywhere between five and
60 days, only cases involving large or complicated assets
require more than 30 days.