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Bankruptcy Auctions

Bankruptcy auctions are conducted on behalf of the courts, and typically involve complicated paperwork and documentation. The court must often find an experienced professional auction company to handle complex legal issues connected with Chapter 7 and Chapter 11 bankruptcy sales. The Tranzon companies have been through this process many times, and know how to succeed even when owners are absent and records of the property are difficult to find. We can attract enough prospective buyers to ensure competitive bidding, help avoid unnecessary holding costs and preserve the value of the assets.

Case Study:


Tranzon Fox managed the auction of 11 commercial properties that were owned by a group of unrelated debtors in the same geographical area. The properties included mobile home parks, a mini-storage facility, an office building, a restaurant and vacant commercial and residential sites. There were only four weeks prior to the scheduled sale to market the auctions. Tranzon Fox installed custom signs at each of seven auction sites, placed ads in newspapers throughout the region, sent direct mail letters to a list of promising buyers, and prepared an information package for prospective buyers.

The campaign brought 177 inquiries and resulted in 61 registered bidders, including 18 who registered prior to the auctions. Tranzon Fox set up unique terms allowing creditors to bid at the auctions by providing a financial obligation of half the standard commission amount. This approach avoided costly legal procedures and appealed to creditors. The primary lienholder registered at the first auction site to protect its interests in the properties, but did not attend later auctions because earlier bids were high enough above the liens. The total for the day-long series of auctions was over $1.4 million, exceeding the expected total of $1 million.