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

Tag Archives: Delaware avoidance action

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

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

Bankruptcy Trustee in Eclipse Aviation Files Preference Actions

Posted in Preference Litigation

In November, Jeoffrey Burtch, the Chapter 7 Trustee in the AE Liquidation bankruptcy (formerly "Eclipse Aviation"), began filing preference actions against various creditors of Eclipse.  Eclipse Aviation began as a New Mexico manufacturer of small jet aircraft.  The company filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on November 25, 2008.  As stated in the Affidavit in Support of… Continue Reading

Adversary Actions Filed in MPC Bankruptcy

Posted in Preference Litigation

Introduction Recently, over 180 adversary actions were filed in the MPC Computers bankruptcy.  The adversary actions fall generally in to two categories - preference actions filed by MPC’s Committee of Unsecured Creditors and breach of contract actions filed by MPC.  This post will look briefly at why MPC filed for bankruptcy and discuss what may happen next now that… Continue Reading

Trustee Files More Avoidance Actions in NWL Holdings

Posted in Preference Litigation

In August, the Chapter 7 Trustee in the National Wholesale Liquidators ("NWL") bankruptcy filing approximately 90 preference actions.  Just recently,  the Trustee filed over 100 more preference actions in NWL.  In November of 2008, I wrote about the commencement of NWL bankruptcy (read my prior post concerning the NWL bankruptcy here).  As indicated in the prior post, NWL filed for bankruptcy in agreement… Continue Reading

Decision in Archway Cookies Grants Summary Judgment Based on Ordinary Course of Business Defense

Posted in Preference Litigation

Introduction On September 1, 2010, Judge Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware issued a decision finding that the payment practices between a creditor and debtor satisfied the ordinary course of business defense.  Judge Sontchi’s decision is worth review as it provides a current look at one of the most… Continue Reading

Liquidating Trustee of Intermet Corporation Files Preference Actions in Delaware

Posted in Preference Litigation

Introduction Earlier this month, the Liquidating Trustee in the Intermet bankruptcy filed preference actions against various defendants.  This post will look at the nature of Intermet’s business, why the company filed for bankruptcy and the circumstances behind the formation of the Liquidating Trust that is pursuing the preference actions. As I often do on this blog, much of… Continue Reading

Ascendia Brands Files Over 200 Preference Actions in Delaware Bankruptcy Proceeding

Posted in Preference Litigation

Introduction In July of this year, Ascendia Brands, Inc., began filing preference actions against various defendants who allegedly received payments from Ascendia.  According to the complaints, the defendants, many of whom were former customers of the company, received "avoidable" payments either before or after Ascendia filed for bankruptcy.  Citing various provisions of the Bankruptcy Code, Ascendia alleges that the recipients… Continue Reading

LandSource Communities Development Commences Preference Actions

Posted in Preference Litigation

 Introduction Recently, the LandSource Creditor Litigation Liquidating Trust (the "Litigation Trust"), commenced various avoidance actions in the United States Bankruptcy Court for the District of Delaware.  This post will look briefly at the events leading to the commencement of this bankruptcy proceeding. Further, the post will look at some of the issues that confronted the… Continue Reading

Trustee Commences Preference Actions in Adva-Lite Bankruptcy

Posted in Bankruptcy Case Update, Preference Litigation

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,… Continue Reading