Question for Trustees/ Debtor's Counsels

[distressed2017]

What is the name of your state (only U.S. law)? NJ

Hi all,

Hopefully this question is appropriate for this forum...

I've been looking to buy machinery/equipment from Chp 7 and 11 Bankruptcy cases for my family business. I've been following some specific bankruptcy cases and looking through the Schedule A/Bs. Whenever I see equipment that I'm interested in, I have been reaching out to Trustees to see if they are interested in selling them to me.

It seems like A LOT of the trustees automatically hire an auctioneer the moment they get assigned to a case. Most of the responses I get tell me to contact the Auctioneer. I'm wondering, is there a specific reason why Trustees like to go to auctioneers? From what I can see, there are various drawbacks from using auctioneers - they charge expenses for marketing, logistics, etc. Plus they also charge a hefty buyer's premium which ultimately ends up in a lower bid from buyers. Auctioneers also seem to take a very long time to actually arrange the sale.

I fully intend on offering Trustees a reasonable price for the equipment that I'm interested in, and I'm capable of paying cash immediately. Am I just not approaching Trustees right? Any thoughts appreciated!

thanks!
Claire

 

[Zigner]

Trustees aren't in the business of running a swap meet.

Frankly, yours is not a legal question.

 

[despritfreya]

Trustees aren't in the business of running a swap meet.

Well said.

Further, if you are dealing with a Chapter 11 the Debtor is reorganizing and therefore not typically interested in selling off its equipment. We get tons of "solicitations". Each one is simply sent to the junk folder.

Des.