The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of American Virtual Cloud Technologies, Inc. on February 6, 2023. The Court approved the asset purchase agreement between the debtor and winning bidder, for the sale of substantially all its assets. To qualify as a qualified bidder, interested parties should submit their bids by March 3, 2023.

The initial minimum overbid should be in the amount of $0.23 million more than the initial purchase price. If the debtor receives any qualified bids then it would hold an auction for its assets on March 7, 2023. At the auction, the subsequent bids would be in increments of $0.23 million.

The stalking horse bidder would be entitled to a break-up fee of 3% and expense reimbursement of $0.15 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for March 15, 2023.