SunCrest LLC, the owner of a master-planned community in Draper, will sell the assets at auction on June 11 under procedures approved last week by the bankruptcy judge in Salt Lake City.
SunCrest filed in Chapter 11 on April 11.
Bids are to be submitted by June 9. The hearing for approval of the sale is scheduled for June 16. SunCrest has the right to designate a bidder as the so-called stalking horse, which can receive a breakup fee if another buyer wins the auction at a higher price.
The property contains 2,452 lots that haven't been sold. SunCrest says it invested $65 million in the development.
The petition listed assets of $54 million against debt totaling $55.3 million, including $44 million owing to secured lender Zions First National Bank. Another secured lender is owed more than $7 million.