Commercially Reasonable

Bankruptcy professionals recognize that the disposal of assets must be perceived by debtors, creditors and the courts as fair and commercially reasonable.

It is not uncommon to find that one or more of the affected parties challenges the method of disposition chosen by the bankruptcy professional. In all cases where such a challenge is raised, Ritchie Bros. actively participates in the rebuttal process as it pertains to the marketing and auction of specific assets.

Numerous decisions have affirmed that Ritchie Bros. auctions meet or exceed the standards of commercial reasonableness, due to some or all of the following criteria:

• All Ritchie Bros. auctions are open to the general public.
• All Ritchie Bros. auctions are unreserved, meaning that buyers set fair market value.
• Bidding at Ritchie Bros. auctions is easy and convenient for prospective buyers, with the option of on-site, online or proxy bidding at all auctions.
• Ritchie Bros. auctions attract bidders from over 200 countries, ensuring that all items sell for global fair market value.
• In 2007, there were more than 254,000 bidder registrations at Ritchie Bros. auctions.
• Average attendance for industrial in 2007 was more than 1,300 bidders, but larger auctions often attract several thousand bidders. The largest Ritchie Bros. auction to date in 2007 attracted more than 5,800 registered bidders, and auctions regularly attract 2-3,000 bidder registrations.
• All auctions are extensively marketed to our database of over 450,000 prospective customers, with an average of 50,000 brochures mailed for each auction.
• Ritchie Bros. auctions are both a recognized venue and accepted means for selling trucks, equipment and real estate.
• With 38 auction sites around the world, including 29 in North America, and the option of on-site, online or proxy bidding, all items at Ritchie Bros. auctions are sold in recognized markets.

Contact a Ritchie Bros. representative to learn more about commercially-reasonable asset disposition at one of our auctions.