The US Bankruptcy Court approved the bidding procedure relating to sale of substantially all the assets of Cereplast, Inc. on May 12, 2014. As per the order, trustee has been authorized to sell substantially all the assets of Cereplast, Inc. to Trellis Earth Products, Inc., stalking-horse bidder, for $2.28 million. The Court has approved the bidding procedures for the sale.

As per the approved bidding procedures, bid deadline for submitting qualified bids has been set at June 9, 2014. Qualified bids should not be less than $2.28 million plus $0.10 million and should accompany with good-faith deposit of 10% of the cash portion of proposed purchase price. If the Stalking Horse Bidder is not the Successful Bidder and the sale closes with the successful bidder, the stalking-horse bidder shall be entitled to receive $0.05 million as break-up fee.

The auction will be held on June 17, 2014. The Sale Approval Hearing will be held following the auction on June 17, 2014.