We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Spongetech Public Auction Wins Court Approval

Law360 (March 16, 2011, 7:42 PM EDT) -- A New York bankruptcy judge on Tuesday approved a public auction of the assets of scandal-plagued and bankrupt sponge maker Spongetech Delivery Systems Inc.

Under the terms of the auction procedures, the initial overbid is $550,000, and subsequent bids must increase by increments of $10,000, according to an order issued by Judge Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York.

The trustee will pay a breakup fee of $25,000 to the stalking horse offeror if another bidder succeeds, according...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.