Starting on September 14, 2018, George Miller, as Chapter 7 Trustee of the DA Liquidating Corporation, f/k/a Delivery Agent, Inc., et al. (“Debtors”) filed approximately 84 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547 and 550 of the Bankruptcy Code.
Delivery Agent and its affiliated debtors filed voluntary petitions for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on September 15, 2016. Delivery Agent had originally filed for Chapter 11 protection in September with $80 million in debt, after a struggle with disappointing profitability and a need to increase cash and revenues from online platforms allowing viewers to buy goods from entertainment sites or their televisions. The case was converted to a chapter 7 proceeding last year.
The various avoidance actions are pending before the Honorable Laurie S. Silverstein. The Pretrial Conference has been set for November 15, 2018.
For readers looking for more information concerning claims and defenses in preference litigation, attached is a booklet prepared by this firm on the subject: “A Preference Reference: Common Issues that Arise in Delaware Preference Litigation.”
Carl D. Neff is a partner with the law firm of Fox Rothschild LLP. You can reach Carl at (302) 622-4272 or at email@example.com.