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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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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

Preference Actions Filed in Ultimate Escapes Bankruptcy

Posted in Preference Litigation

This week, Edward Gavin, the liquidating trustee (the "Trustee") for the Ultimate Escapes bankruptcy, filed preference complaints against several defendants.  Under the complaints, the Trustee alleges that the defendants received preferential transfers that are avoidable under 11 U.S.C. section 547 of the Bankruptcy Code.  For those unfamiliar with this bankruptcy proceeding, Ultimate Escapes ("Ultimate" or… Continue Reading

Trustee Files Preference Actions in Moll Industries Bankruptcy

Posted in Preference Litigation

Earlier this week, George L. Miller, the chapter 7 trustee (the "Trustee") in the Moll Industries bankruptcy, began filng complaints seeking to avoid and recover what the Trustee alleges are avoidable transfers, or preference payments, from various third parties.  For those unfamiliar with Moll Industries, the company filed a chapter 11 petition for bankruptcy in… Continue Reading

A Preference Reference: Common Issues That Arise in Delaware Preference Litigation

Posted in Preference Litigation

We recently finished "A Preference Reference:  Common Issues that Arise in Delaware Preference Litigation."  Delaware has such a high volume of preference litigation, we thought it might be helpful to put together a brief publication that addresses the elements and common defenses to avoidable preference claims.  We wrote the booklet in a format that hopefully is… Continue Reading

Unsecured Creditor Agent in Orleans Homebuilders Files Preference Actions

Posted in Preference Litigation

Introduction Earlier this month, JH Cohn, LLP ("Cohn" or "Plaintiff") began filing preference complaints against various defendants in the Orleans Homebuilders ("Orleans") bankruptcy proceeding.  For those not familiar with the Orleans bankruptcy proceeding, Cohn was appointed as the "unsecured creditor agent" pursuant to order confirming Orleans’ Modified Second Amended Joint Plan of Reorganization (the "Plan"). … Continue Reading

Chapter 7 Trustee in ManagedStorage (aka Incentrix Solutions) Files Preference Actions

Posted in Preference Litigation

Introduction In January, Jeoffrey L. Burtch, the Chapter 7 Trustee (the "Trustee") in the ManagedStorage bankruptcy proceeding, commenced adversary proceedings in the Delaware Bankruptcy Court against various defendants.  As alleged in the complaints, the Trustee claims that the defendants received "preferential" payments from ManagedStorage (dba "Incentrix Solutions" or "Incentrix") and that the payments are subject to avoidance and… Continue Reading

Creditor Trustee in Champion Home Bankruptcy Files Preference Actions

Posted in Preference Litigation

Introduction This month, Bruce H. Mason, acting as creditor trustee (the "Trustee") for the CEI Liquidation Trust (the "Liquidation Trust" or "Trust") began filing preference actions against various defendants.  As stated in the Liquidation Trust’s complaints, the Trust was created in the Champion Enterprises (aka "Champion Home Builders" or "Champion") bankruptcy pursuant to Champion’s Second Amended… Continue Reading

Liquidating Trust in Advanta Corp. Bankruptcy Files Preference Actions

Posted in Preference Litigation

Introduction Earlier this month, the Liquidating Trust in the Advanta Corp. bankruptcy proceeding began filing preference complaints in the Delaware Bankruptcy Court.  Advanta and certain affiliates ("Advanta") filed for bankruptcy in Delaware in November of 2009.  As stated in the Liquidating Trust’s complaints, Advanta was at one time one of the largest issuers of "business… Continue Reading

Trustee in Opus South Bankruptcy Files Preference Actions

Posted in Preference Litigation

Last month, Jeoffrey Burtch (the "Trustee"), as Chapter 7 Trustee for the Opus South Bankruptcy, began filing preference complaints seeking to recover what the Trustee alleges are avoidable transfers under the Bankruptcy Code.  For those unfamiliar with the Opus South bankruptcy, the company filed petitions for bankruptcy in the Delaware Bankruptcy Court on April 22,… Continue Reading