The place going bankrupt is called
Pearson Mustang. Why did they go bankrupt? It's a long story...but let's just say the guy took orders to build lots of cars that were never completed...and there's about $500K in cash that the owner can't account for.
For the full story, check out this link:
http://www.mustangforums.com/m_1351551/tm.htm
As for what will be sold at the auction... I was at the Pearson Mustang facility in North Platte back in July and I've seen the "cars" that will be for sale. There are about 10 67-68 Mustangs in the VERY early stages of restoration inside the shop. They've all been media blasted and primed, but most have had no significant bodywork done. Those that have had some work done...well...the work isn't that great. There are more cars (not all are Mustangs) sitting outside in the weeds in the back of his shop. I'm not sure any of those cars are worth the trouble.
Only 1 car in the shop has an engine and drivetrain. The rest have neither.
Keep in mind that these cars are shells...there are absolutely no interior parts, glass, engine compartment items, etc included with them. A few of the cars don't even have front fenders and hoods.
The auction flier I have seen shows 3 cars sitting in the shop that are painted. Those cars have aleady been sold. Those were the only cars that might have been worth anything, in my opinion.