Earlier this month, Bettina M. Whyte, the SemGroup Litigation Trustee (the “Trustee”) filed approximately 350 adversary actions against various creditors in the SemCrude bankruptcy. The majority of the adversary actions are preference actions under 11 U.S.C. section 547 of the United States Bankruptcy Code. Some of the adversary actions, however, allege defendants received fraudulent transfers from various SemCrude debtors (the “Debtors”).
As stated in the Trustee’s pleadings, Debtors filed for bankruptcy in July of 2008. On November 30, 2009, Debtors’ Fourth Amended Joint Plan of Reorganization (the “Plan”) was confirmed by the United States Bankruptcy Court for the District of Delaware. Debtors bankruptcy proceeding, as well as the Trustee’s adversary actions, are before the Honorable Brendan L. Shannon.
Pursuant to Plan, the Trustee was appointed to oversee the SemGroup Litigation Trust. Under the Plan, the Litigation Trust may pursue certain claims that would otherwise belong to the Debtors. It is these claims that the Trustee seeks to liquidate through the various adversary actions.
To read other posts on this blog concerning the SemCrude bankruptcy proceeding, click here. Further, click here to read prior posts regarding developments in Delaware preference litigation, including a look at other recently commenced preference actions.