Biodegradable packaging materials company EarthShell Corp has received approval from the bankruptcy court to auction its assets for at least US$1 million. The sale will take place on 7 March.

The company recently filed for Chapter 11 bankruptcy protection after saying that it could not meet its payroll and other operational obligations.

EarthShell says that one of its sub-licensees, a subsidiary of Renewable Products Inc is prepared to act as a ‘stalking-horse’ bidder to start the auction at $1. As part of the stalking-horse agreement, the RPI subsidiary will receive a $300,000 break-up fee to cover expenses if it does not win the auction.

Posted: 01|30|07 at 3:44 pm. Filed under: US News.