Posted on November 18, 2009 by Jason Cornell, Esq.

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

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.") bankruptcy.  Both groups of complaints seek the avoidance and recovery of alleged preferential transfers from various creditors of the debtors. 

The adversary actions filed in both Pope and Specialty Motors are before the Honorable Christopher S. Sontchi.  In prior preference actions, Judge Sontchi entered scheduling orders similar to the form scheduling order attached here.  A copy of Judge Sontchi's Chamber Procedures are attached here.

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Jason Cornell is a bankruptcy attorney at the law firm Fox Rothschild LLP in Wilmington, Delaware.  If you have questions regarding a Delaware bankruptcy proceeding,  you can reach Jason at 302 427 5512, or jcornell@foxrothschild.com.

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Posted on August 1, 2009 by Jason Cornell, Esq.

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

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 Posture of These Cases

At the time of this posting, the Committee had not filed the summonses which would contain information regarding service of process and the initial pretrial conference scheduled by the Court.  Approximately three weeks before filing the preference actions, the Committee sent out demand letters to those parties who its claimed received avoidable preferences during the ninety days prior to AMH's petition date.

AMH filed for bankruptcy on August 6, 2007.  Therefore, the Committee has until early August to file the adversary actions in order to satisfy the statute of limitations.  Although preference actions are often filed by a debtor, the Committee was assigned the right to pursue AMH's preference claims pursuant to the Amended Chapter 11 Plan of Liquidations filed by AMH on November 25, 2008.

These adversary actions are before the Honorable Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware.  For prior posts on this blog regarding issues that arise in preference actions, click here.  To read a post regarding a recent decision by Judge Sontchi in the American Home Mortgage bankruptcy, click here.

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Jason Cornell is a bankruptcy attorney at the law firm Fox Rothschild LLP in Wilmington, Delaware. If you have questions regarding this or any other Delaware bankruptcy proceeding, you may contact Jason at (302) 427-5512 or jcornell@foxrothschild.com.

 
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