The US Bankruptcy Court gave an order approving the bidding procedures relating to the sale of substantially all the assets of Xtera Communications, Inc. on December 6, 2016. The Court approved the asset purchase agreement between the debtor and H.I.G. Europe – Neptune, Ltd., the stalking horse bidder, for the sale of substantially all its assets for a purchase price of $10 million in cash plus assumption of assumed liabilities. To qualify as a qualified bidder, interested parties should submit their bids by January 23, 2017. The initial minimum overbid should be in the amount of at least $10.75 million. If the debtor receives any qualified bids then it would hold an auction for its assets on January 25, 2017. At the auction, the subsequent bids would be in increments of $0.25 million. The stalking horse bidder would be entitled to a break-up fee of 3% of the aggregate purchase price and expense reimbursement of $0.50 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for January 30, 2017.