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.