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

Tag Archives: Delaware preference action

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

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

Trustee in Meridian Automotive Systems Files Preference Complaints

Posted in Preference Litigation

On August 7,  2009, Meridian Automotive Systems ("Meridian") filed a voluntary petition for relief under chapter 7 of the United States Bankruptcy Code.  Soon after Meridian filed its petition for bankruptcy, the Office of the United States Trustee appointed George L. Miller to serve as the chapter 7 trustee (the "Trustee") for the Meridian bankruptcy… Continue Reading

Trustee in Viashow Bankruptcy Commences Avoidance Actions

Posted in Preference Litigation

Last month, the Chapter 7 trustee (the "Trustee") in the Viashow bankruptcy filed avoidance actions against several creditors of the bankruptcy estate.  One avoidance action in particular seeks to recover damages allegedly sustained by Viashow due to breaches of fiduciary duties by its officers and directors (the "D&O Action").  In addition to Viashow’s officers and directors, the D&O Action… 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

Chapter 7 Trustee in Consolidated Bedding Commences Preference Actions

Posted in Preference Litigation

Introduction Earlier this month, the Chapter 7 Trustee (the "Trustee") in the Consolidated Bedding bankruptcy commenced several avoidance actions under sections 547 and 548 of the Bankruptcy Code.  Consolidated commenced this bankruptcy proceeding on May 29, 2009, when it filed petitions for bankruptcy under Chapter 7 of the Bankruptcy Code.  Consolidated manufactured and sold mattresses under… 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

Chapter 7 Trustee in HRP Myrtle Beach Holdings Files Preference Actions

Posted in Preference Litigation

Recently, the Chapter 7 Trustee (the "Trustee") in the HRP Myrtle Beach Holdings bankruptcy, filed several avoidance actions pursuant to sections 547, 548, and 549 of the Bankruptcy Code.  The avoidance actions, filed in the United States Bankruptcy Court for the District of Delaware, are before the Honorable Kevin J. Carey, Chief Judge of the Delaware Bankruptcy… Continue Reading

Chapter 7 Trustee Commences Avoidance Actions in Rehrig International

Posted in Preference Litigation

Earlier this month, the Chapter 7 Trustee for the Rehrig International bankruptcy estate filed several preference actions against various defendants. As set forth in the complaints, the Trustee seeks to avoid and recover payments which he contends are preferential transfers, fraudulent conveyances and/or postpetition transfers. Rehrig filed for bankruptcy on September 5, 2008. Less than four… Continue Reading

Creditors’ Committee of Pacific Energy Resources Files Avoidance Actions

Posted in Preference Litigation

In late August, the Official Committee of Unsecured Creditors (the "Committee") in the Pacific Energy Resources bankruptcy, began filing adversary actions against various creditors.  The complaints filed by the Committee allege the defendants received preferential transfers and/or fraudulent transfers from the Debtor.  Prior to filing the adversary actions,  the Committee filed a motion with the Delaware… 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

Plan Administrator in Goody’s Bankruptcy Files Preference Actions

Posted in Preference Litigation

 Introduction Recently, the Plan Administrator for the Goody’s Family Clothing bankruptcy commenced adversary actions against various defendants in the United States Bankruptcy Court for the District of Delaware.  The Goody’s Plan Administrator was appointed pursuant to Goody’s plan of reorganization.  The Bankruptcy Court approved Goody’s plan on October 7, 2008, approximately four months after the… 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

Recent Decision in Pillowtex Addresses Elements of the Ordinary Course of Business Defense in a Preference Action

Posted in Preference Litigation

Introduction Judge Kevin J. Carey, Chief Judge of the United States Bankruptcy Court for the District of Delaware, recently issued a decision in the Pillowtex bankruptcy addressing the ordinary course of business ("OCB") defense.  Given the large number of preference actions that are filed it Delaware every year, there is a fair amount of case law in… Continue Reading

Trustees in the Pope & Talbot and Specialty Motors Bankruptcies File Hundreds of Preference Actions

Posted in Preference Litigation

The Chapter 7 Trustees in the Pope & Talbot and Specialty Motors bankruptcies recently filed hundreds of complaints in the United States Bankruptcy Court for the District of Delaware.  George Miller is the Chapter 7 Trustee in the Pope & Talbot bankruptcy while Jeoffrey Burtch is the Trustee in the Specialty Motors (aka "Von Weise Inc.")… Continue Reading

Creditors Committee in American Home Mortgage Bankruptcy Files Over 90 Preference Actions

Posted in Preference Litigation

Introduction Earlier this month,  the Official Committee of Unsecured Creditors (the "Committee") for American Home Mortgage ("AMH") filed over ninety (90) adversary actions (review one of the Committee’s Complaints here).  As reflected in the Complaint,  the Committee alleges that various creditors of AMH received preferential and/or fraudulent transfers pursuant to 11 U.S.C. sections 547, 548, 550 and 551.  Procedural… Continue Reading