Trustee Commences Preference Actions in Adva-Lite Bankruptcy
The chapter 7 trustee for the Adva-Lite bankruptcy recently filed over 70 adversary complaints seeking to recover what the trustee considers avoidable transfers under sections 547, 548, 549 and 550 of the Bankruptcy Code. The preference actions are before the Honorable Kevin J. Carey, Chief Judge of the Delaware Bankruptcy Court. As reflected in the Adva-Lite complaints, the trustee seeks to "avoid and recover all transfers made by one or more of the Debtors of an interest of the Debtors in property and to or for the benefit of Defendant or any other transferee." (Read an Adva-Lite preference complaint here).
According to Adva-Lite's declaration in support of its first-day bankruptcy motions, prior to bankruptcy the debtors were "leaders in the $18 billion promotional products industry." In 2005, Adva-Lite's sales reached over $83 million as a supplier of promotional flashlights, drinkware, tools and pens. Now the trustee is seeking to recover many of the payments Adva-Lite paid to vendors during the ninety days prior to the petition date. To review posts addressing defenses common to a preference action, click here.
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