Header graphic for print
Delaware Bankruptcy Litigation Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States

Category Archives: Preference Litigation

Subscribe to Preference Litigation RSS Feed

THQ Inc. Preference Actions Filed

Posted in Preference Litigation

From December 17-19, 2014, THQ Inc. filed approximately 78 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, THQ Inc. (the “Debtor”) filed a petition for bankruptcy in the U.S.Bankruptcy… Continue Reading

Satcon Technology Corp. Preference Actions Update

Posted in Preference Litigation

On October 17, 2014, Charles M. Forman, the Chapter 7 Trustee of the Satcon Technology Corp. bankruptcy estate, filed a number of complaints seeking the avoidance and recovery of alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code.  To review a prior post concerning the filing of these complaints, click here…. Continue Reading

Quantum Foods Preference Actions Update

Posted in Preference Litigation

In a prior post, we discussed the commencement of approximately 72 preference actions filed in the Quantum Foods bankruptcy proceeding by the Creditors Committee.  In the preference actions at issue, the Creditors Committee seeks to avoid and recover purported preferential transfers under Sections 547 and 550 of the Bankruptcy Code, and purported fraudulent transfers under… Continue Reading

Dots, LLC Preference Actions Filed

Posted in Preference Litigation

On November 7, 2014, in the neighboring jurisdiction of the United States Bankruptcy Court for the District of New Jersey, Dots, LLC, et al. (“Debtors” or “Dots”) filed approximately 70 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims of the defendants pursuant… Continue Reading

Quantum Foods: Committee Files Preference Actions

Posted in Preference Litigation

Introduction On October 28, 2014, The Official Committee of Unsecured Creditors of Q v. AB Foods LLC (the “Committee”), the committee in the Quantum Foods, LLC bankruptcy, began filing complaints to recover what it contends are avoidable preferences.  The Committee filed the preference actions in the Delaware Bankruptcy Court and argue that the transfers, or… Continue Reading

Charles M. Forman, Trustee in Satcon Bankruptcy, Files Preference Actions

Posted in Preference Litigation

Introduction On October 17, 2014, Charles M. Forman, the Chapter 7 Trustee (the “Trustee”) for the bankruptcy estate of Satcon Technology Corp., began filing complaints to recover what he contends are avoidable preferences.  The Trustee filed the preference actions in the Delaware Bankruptcy Court and argued that the transfers, or payments, received by various defendants… Continue Reading

Barry Mukamal, Trustee in Southern Air Holdings Bankruptcy, Files Preference Actions

Posted in Preference Litigation

Introduction Earlier this month, Barry E. Mukamal, in his capacity as Litigation Trustee (the “Trustee”) of the SAI Litigation Trust, began filing complaints to recover what the Trustee contends are avoidable preferences.  The Trustee filed the preference actions in the Delaware Bankruptcy Court and argues that the transfers, or payments, received by various defendants are… Continue Reading

MCG Preference Actions Update

Posted in Preference Litigation

In a prior post, we discussed that a number of preference actions were filed in the MCG Limited Partnership, et al. bankruptcy proceeding by the Chapter 7 Trustee.  Since this post, an additional 93 preference complaints were filed, bringing the total to 131. Click here for an example of a preference complaint filed in these cases…. Continue Reading

Preference Actions Filed in MCG Limited Partnership Bankruptcy

Posted in Preference Litigation

On August 1, 2014, the Chapter 7 Trustee of MCG Limited Partnership, et al., filed approximately 38 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, MCG Limited Partnership, and various… Continue Reading

Preference Litigation: Statutory Lien Defense

Posted in Preference Litigation

In this prior post, we discussed common defenses that can be asserted in defending preference actions under the Bankruptcy Code.  Another defense that may be utilized is the “statutory lien defense” pursuant to Section 547(c)(6) of the Bankruptcy Code. A statutory lien is a lien that arises by operation of a statute.  Examples of statutory… Continue Reading

Tri-Valley Corporation Preference Actions Filed

Posted in Preference Litigation

From July 8 – 9, 2014, Charles A. Stanziale, in his capacity as the chapter 7 trustee of Tri-Valley Corporation, et al., filed approximately 23 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code.  Tri-Valley Corporation, and various affiliated entities (the “Debtors”) filed petitions for bankruptcy… Continue Reading

Capitol Infrastructure Preference Litigation Update: Pretrial Conference Scheduled for July 22, 2014

Posted in Preference Litigation

In this prior post, the preference actions filed by Jeoffrey L. Burtch, Chapter 7 Trustee of the Capitol Infrastructure, LLC bankruptcy estates, from April 22 through 24th were discussed.  Since the filing of these preference actions, a Pretrial Conference has been set for July 22, 2014 at 2:00 p.m. at US Bankruptcy Court, 824 Market St.,… Continue Reading

Capitol Infrastructure, LLC Preference Litigation

Posted in Preference Litigation

From April 22 – 24, 2014, Jeoffrey L. Burtch, Chapter 7 Trustee of the Capitol Infrastructure, LLC bankruptcy estates, filed approximately 71 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). Capitol Infrastructure, LLC… Continue Reading

AFA Investment Preference Actions Filed

Posted in Preference Litigation

On March 28, 2014, AFA Investment Inc. filed approximately 125 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims of the defendants pursuant to Section 502(d), and seeking attorneys’ fees.  AFA Investment Inc., and various affiliated entities (the “Debtors”) filed petitions for bankruptcy… Continue Reading

Minimizing Preference Exposure (Part II) – Contemporaneous Exchanges

Posted in Preference Litigation

In this prior post, a discussion was provided in connection with requiring a company to prepay for its goods or services in order to limit potential preferential exposure.  If a company heading into bankruptcy cannot prepay for its goods or services, however, another measure which can be taken by vendors to minimize their preferential exposure… Continue Reading

Preference Actions Filed in Open Range Bankruptcy

Posted in Preference Litigation

Last week, Charles M. Forman, acting as Chapter 7 Trustee (the “Trustee”) for Open Range Communications (“Open Range”) began filing complaints to recover what the Trustee contends are avoidable preferences. The Trustee filed the preference actions in the Delaware Bankruptcy Court and argues that the transfers, or payments, received by various defendants are avoidable and… Continue Reading

Pirinate Consulting, Trustee in NewPage Bankruptcy, Files Preference Actions

Posted in Preference Litigation

Introduction Earlier this month, Pirinate Consulting Group LLC, in its capacity as Litigation Trustee (the “Trustee”) of the NewPage Creditor Litigation Trust, began filing complaints in the Delaware Bankruptcy Court seeking the avoidance and recovery of what the Trustee alleges are preferential transfers.  All total, the Trustee filed over 780 preference complaints. In 2011, I… Continue Reading

Berkline/BenchCraft Plan Administrator Files Preference Actions

Posted in Preference Litigation

Introduction On April 24, 2013, Robert S. Bernstein, Plan Administrator for the Berkline/BenchCraft bankruptcy estates, began filing complaints with the Delaware Bankruptcy Court seeking to recover what he contends are preferential transfers.  For those not familiar with preference actions, Bernstein contends that certain payments, or "transfers", made to creditors in the months prior to the Berkline bankruptcy… Continue Reading

Preference Complaints filed in RG Steel Bankruptcy

Posted in Preference Litigation

Introduction Earlier this week, RG Steel Sparrows Point, LLC ("RG Steel"), began filing complaints to avoid and recover what it contends are preferential transfers under sections 547 and 548 of the United States Bankruptcy Code.  For those not familiar with this bankruptcy proceeding, RG Steel originally filed chapter 11 petitions for bankruptcy in the Delaware Bankruptcy Court… Continue Reading

Bankruptcy Trustee in Ultimate Electronics Files More Preference Actions

Posted in Preference Litigation

Introduction In July of 2011, the Chapter 7 Trustee (the "Trustee") in the Ultimate Acquisition Partners (formerly "Ultimate Electronics") bankruptcy began filing complaints to avoid and recover payments which the Trustee alleged were avoidable transfers under section 547 of the United States Bankruptcy Code.  Earlier this month, the Trustee filed another round of preference complaints seeking… Continue Reading

Raser Technologies Trustee Files Preference Complaints

Posted in Preference Litigation

Introduction Earlier this month, William Giovanniello, acting as the creditor trustee (the "Trustee") for Raser Technologies ("Raser"), began filing complaints seeking to avoid and recover what the Trustee contends are preferential transfers under 11 U.S.C. sec. 547.  Often, defendants receive preference complaints and have little or no information about the underlying bankruptcy proceeding and the reasons… Continue Reading