American Virtual Cloud Technologies, Inc. filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on January 17, 2023. The debtor seeks the Court's approval for the sale of its substantially all its assets to the winning bidder. To qualify as a qualified bidder, interested parties should submit their bids by March 3, 2023, along with good-faith deposit in the amount of 10% of the bid price.

The initial minimum overbid should be at least $0.23 million more than the initial purchase price. The debtor has scheduled an auction 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 bidding procedure hearing is scheduled for February 7, 2023, and sale hearing is scheduled for March 13, 2023. The proceeds from the sale would be used to pay off the amount owed to the debtor's pre-petition lender.

Sale closing shall occur no later than March 27, 2023.