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Delaware Bankruptcy Litigation Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States

Category Archives: Preference Litigation

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THQ v. Starcom – Preference Action Dismissed

Posted in Opinions, Preference Litigation

Summary In yet another straight-forward 15 page decision signed April 18, 2016, Judge Walrath of the Delaware Bankruptcy Court granted a defendant’s motion to dismiss a preference complaint, but granted the plaintiff leave to amend. Judge Walrath’s opinion is available here (the “Opinion”).  Numerous posts on this blog discuss other opinions issued by the Delaware Bankruptcy… Continue Reading

Coldwater Creek Inc. Preference Actions Filed

Posted in Preference Litigation

In the United States Bankruptcy Court for the District of Delaware, Peter Kravitz, as the Liquidating Trustee of the CWC Creditors Liquidating Trust, filed approximately 106 preference actions on March 15, 2016 seeking the avoidance and recovery of allegedly preferential and fraudulent transfers under Sections 547, 548 and 550 of the Bankruptcy Code, along with the… Continue Reading

Simplexity, LLC Preference Actions Filed

Posted in Preference Litigation

On March 14, 2016, Charles A. Stanziale, Jr., as the Chapter 7 Trustee of Simplexity, LLC, et al. (the “Debtors”) filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d). By way of background,… Continue Reading

BMT-NW Acquisition Preference Actions Filed

Posted in Preference Litigation

In the month of February 2016, Charles A. Stanziale, Jr., in his capacity as the Chapter 7 Trustee of BMT-NW Acquisition, LLC (“Debtor”), filed approximately 49 preference actions seeking the avoidance and recovery of alleged preferential actions under Sections 547 and 550 of the Bankruptcy Code. By way of background, the Debtor filed a voluntary… Continue Reading

Equinox Payments – Preference Actions Filed

Posted in Preference Litigation

Introduction Charles A. Stanziale, Jr., is on a roll, filing preference actions in a number of cases within the Delaware Bankruptcy Court this month.  As the Chapter 7 Trustee (the “Trustee”) for the bankruptcy estate of EP Liquidation, LLC f/k/a Equinox Payments, LLC (the “Debtor”), he filed approximately 37 complaints to recover what he contends are assets… Continue Reading

Capsule International Holdings Preference Actions UPDATE

Posted in Preference Litigation

By way of update to the Capsule International Holdings preference action filings (see original post here), the Official Committee of Unsecured Creditors (the “Committee”) recently filed a Motion for Authority to Settle Classes of Preference Claim Controversies Pursuant to Bankruptcy Rule 9019(b) and to Modify Compromise Procedures (the “Motion”).  For a copy of the Motion, click… Continue Reading

Capsule International Holdings LLC Preference Actions Filed

Posted in Preference Litigation

On December 17th and 18th, 2015, the Official Committee of Unsecured Creditors (the “Committee”) of Capsule International Holdings, LLC, and its affiliated debtors and debtors in possession (the “Debtors”), filed approximately 80 complaints seeking the avoidance and recovery of allegedly preferential and fraudulent transfers under Sections 547, 548 and 550 of the Bankruptcy Code.  The Committee… Continue Reading

RadioShack Preference Litigation UPDATE

Posted in Preference Litigation

As detailed in this previous post, the Liquidating Trustee appointed to prosecute preference actions in the RadioShack bankruptcy proceeding filed approximately 383 preference actions in late October and early November of this year. Through these complaints, the Liquidating Trustee seeks to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy… Continue Reading

RadioShack Preference Litigation has Begun – En Masse

Posted in Preference Litigation

On February 5, 2015, RadioShack and various related entities filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  We initially published a blog post about the filing here: RadioShack Pulls the Plug.  On October 2, 2015, the Court confirmed the Plan of Liquidation in the RadioShack cases.  Pursuant… Continue Reading

Chopper Express Preference Actions Filed

Posted in Preference Litigation

In the United States Bankruptcy Court for the District of New Jersey, Charles Forman, the Chapter 7 Trustee to the debtors, Chopper Express, Inc., Chopper DDS, Inc., Life Trucking, Inc., and Pumpernickel Express, Inc. (“Debtors”), filed approximately 54 preference actions in early October 2015 seeking the avoidance and recovery of allegedly fraudulent transfers under Sections… Continue Reading

Furniture Brands International – 94 Additional Preference Claims Filed

Posted in Preference Litigation

Since the time of our last post on August 24, 2015, Alan D. Halperin, the Trustee of the FBI Wind Down, Inc. Liquidating Trust has filed 94 additional preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code. Defenses to a Preference Action Preference actions are a… Continue Reading

Furniture Brands International – 93 Additional Preference Claims Filed

Posted in Bankruptcy Case Updates, Preference Litigation

Since the time of my last post, Alan D. Halperin, the Trustee of the FBI Wind Down, Inc. Liquidating Trust has filed 93 more preference complaints.  Because the Debtor filed for bankruptcy on September 9, 2013, the Trustee has only two more weeks to file any additional preference complaints. While we cannot be certain that… Continue Reading

Furniture Brands International – Preference Litigation Update

Posted in Preference Litigation

As explained in a prior post, the Liquidating Trustee had sent out demand letters, the first step towards preference litigation.  The prior post is here: Furniture Brands International – Preference Litigation has Begun. On August 13, 2015, Alan D. Halperin, the Trustee of the FBI Wind Down, Inc. Liquidating Trust began filing preference actions.  In what… Continue Reading

Ordinary Course of Business Defense Further Examined – Burtch v. Revchem Composites, Inc.

Posted in Preference Litigation

In the recent opinion of Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.), Adv. No. 10-52667 (CSS), 2015 WL 4381571 (Bankr. D. Del. July 16, 2015), the Delaware Bankruptcy Court issued a memorandum opinion following trial on claims asserted by Jeoffrey Burtch, Chapter 7 Trustee of Sierra Concrete Design, Inc. (“Sierra” or… Continue Reading

Preference Actions filed in Deb Shops Bankruptcy

Posted in Preference Litigation

On July 29, 2015, Deb Shops SDFMC LLC, in its capacity as debtor in possession, filed 92 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d). By way of background, Deb Shops SDFMC LLC… Continue Reading

Powerwave Preferences – Trustee Obtains Relief Regarding Service of Foreign Defendants

Posted in Preference Litigation

Recently in the Powerwave Technologies Inc. bankruptcy action, the Chapter 7 Trustee filed in excess of 100 preference actions seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code.  To read a prior post on the filing of these actions, click here. Earlier this month, the Chapter 7… Continue Reading

CPI Corp. Preference Actions Filed

Posted in Preference Litigation

From April 24 to 27, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee of CPI Corp., et al., filed preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d). By way of background,… Continue Reading

Furniture Brands International – Preference Litigation has Begun

Posted in Preference Litigation

On September 9, 2013, Furniture Brands International (“Furniture Brands”) and various related entities filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  We initially published a blog post about the filing here: Furniture Brands Files for Bankruptcy in Delaware Seeking to Sell Assets On August 1, 2014,… Continue Reading

CPI Preference Actions – Pretrial Conference Scheduled

Posted in Preference Litigation

As detailed in this prior post, on February 6, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the “Trustee”) of CPI, Corp., et al. (“CPI” or the “Debtors”), filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims pursuant… Continue Reading

Preference Actions filed in CPI, Corp.

Posted in Preference Litigation

On February 6, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the “Trustee”) of CPI, Corp., et al. (“CPI” or the “Debtors”), filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims pursuant to Section 502(d), for attorneys’… Continue Reading

Powerwave Preference Actions Filed

Posted in Preference Litigation

From January 23-27, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the “Trustee”) of Powerwave Technologies, Inc. (“Powerwave” or the “Debtor”), filed approximately 102 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code. Background By way of background, Powerwave filed a petition for… Continue Reading