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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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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

Golden Guernsey Dairy – Preference Actions Filed

Posted in Preference Litigation

Introduction On January 6, 2015, Charles A. Stanziale, Jr., the Chapter 7 Trustee (the “Trustee”) for the bankruptcy estate of Golden Guernsey Dairy, LLC (the “Debtor”), 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,… Continue Reading

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