Trenk Isabel Siddiqi & Shahdanian’s Bankruptcy and Corporate Restructuring Practice Group Wins Ruling Voiding Lender’s “Blind” Auction of Client’s Assets

The Bankruptcy and Corporate Restructuring Practice Group of Trenk Isabel Siddiqi & Shahdanian P.C. has secured a significant win for its client, Technical Arts Group LLC (TAG), in the United States Bankruptcy Court for the District of New Jersey. The firm’s team on the matter included Richard Trenk, Robert Roglieri, and Stephen Gengaro.

On October 15, 2026, the Court threw out a lender’s auction of TAG’s equipment, ruling the sale void as commercially unreasonable and confirming that the lender never acquired title to the assets.

Why did the sale fail? The lender pushed ahead with a “blind” auction. Bidders could not inspect the equipment, relied on an outdated inventory list, and had no assurance they could ever collect what they bought. The lender argued that TAG’s refusal to cooperate justified those shortcuts. The Court disagreed, finding that a difficult borrower does not excuse an unfair sale, and that the lender should have gone to court for help instead of taking matters into its own hands.

What this means for businesses: if you are a borrower facing aggressive collection, a lender’s self-help sale is not the final word. It can be challenged and potentially undone, depending upon the specific facts and circumstances. If you are a lender, the ruling is a clear warning that cutting corners to move quickly can backfire, costing you the assets, the time, and the expense of litigation. Either way, having experienced counsel involved early makes the difference.  To discuss how we can help protect your business in a lender dispute or restructuring, contact Richard D. Trenk at rtrenk@tisslaw.com.