The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of the subsidiary of China Natural Gas, Inc. on November 21, 2014. The Court approved the asset purchase agreement between the debtor and Abax Nai Xin A Ltd. and Abax Lotus Ltd., the stalking horse bidders, for the sale of its subsidiary all its assets for a purchase price of $53 million in cash. The debtor's assets include 100% equity interest in Shaanxi Xilan Natural Gas Equipment Co.

Ltd. The Sale deposit would be in the amount of $0.13 million. To qualify as a qualified bidder, interested parties should submit their bids by December 11, 2014. The initial minimum overbid should be in the amount of $0.13 million more than the initial purchase price.

If the debtor receives any qualified bids then it would hold an auction for its assets on December 12, 2014. The stalking horse bidder would be entitled to a break-up fee of $0.03 million and expense reimbursement of $0.10 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for December 16, 2014.