Kathryn L. Pry, Trustee, filed a motion in the US Bankruptcy Court for the sale of substantially all the assets of Cereplast, Inc. on April 30, 2014. The debtor seeks the Court's approval for the sale of substantially all its assets to Trellis Earth Products, Inc., the stalking horse bidder, for a purchase price of $2.28 million in cash pursuant to the letter of intent dated April 18, 2014. To qualify as a qualified bidder, interested parties should submit their bids by June 10, 2014.

The offer can be made to purchase some or all the bid assets and assume some or all of the assumed liabilities. The initial minimum overbid should be at least $0.10 million more than the initial purchase price. A bid shall be accompanied by good faith deposit in the amount of 10% of the cash portion of the qualified bidder's proposed purchase price.

The debtor has scheduled an auction on June 17, 2014. The Trustee also seeks to employ Sherwood Partners, Inc. as a sale consultant. The stalking horse bidder would be entitled to a break-up fee of $0.05 million in case of termination of the asset purchase agreement.

The sale hearing is scheduled for June 17, 2014 and objections to the sale shall be received by June 10, 2014.