In Re Hart's Manufacturing Co.
Hart's Manufacturing Co., the Debtor-In-Possession, moved to set aside the auction sale of its Corning Property, asserting the proposed price was grossly inadequate and not in the best interest of creditors. The high bidder, Eagle Investment Corp., objected, arguing the sale should be confirmed. The auction, held pursuant to a confirmed plan of liquidation, resulted in Eagle's bid of $250,000. The property is subject to liens totaling $957,000. The Court denied confirmation of the sale, citing an expert appraisal valuing the property at $1.55 million. The Court concluded that the proposed sale price was grossly inadequate and would not maximize creditor recovery, as it would only partially satisfy one creditor and leave no funds for others.