Preference Litigation

We recently finished "A Preference Reference:  Common Issues that Arise in Delaware Preference Litigation."  Delaware has such a high volume of preference litigation, we thought it might be helpful to put together a brief publication that addresses the elements and common defenses to avoidable preference claims.  We wrote the booklet in a format that hopefully is…

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…

Introduction

Last week, Visteon Corporation began filing preference complaints against hundreds of current and former creditors of the company. This post will look briefly at the nature of Visteon’s business, why the company filed for bankruptcy, as well some of the likely “next steps” now that the company has filed its preference complaints.

The Bankruptcy…

Background

Last month, the Chapter 7 Trustee in the Sunset Aviation bankruptcy began filing preference actions against various defendants seeking the recovery of alleged avoidable transfers.  The Sunset Aviation bankruptcy proceeding includes the consolidated bankruptcies of Sunset Aviation, Inc., JetDirect Aviation and Regal Jets, LLC.  The first bankruptcy commenced on February 25, 2009, when Regal…

Introduction

Earlier this month, Qimonda Richmond, LLC and Qimonda North America Corp (collectively, the “Debtors”), filed adversary actions against various defendants in the United States Bankruptcy Court for the District of Delaware.  As alleged in the complaints, Debtors contend that the defendants received preferential transfers which are subject to avoidance under section 547 of the…

Introduction

In December of 2010, the Official Committee of Unsecured Creditors (the “Committee”), in the Precision Parts International (“PPI”) bankruptcy commenced several avoidance actions against various creditors of PPI.  As reflected in the Committee’s complaints, on November 12, 2010, the Delaware Bankruptcy Court entered an order granting the Committee derivative standing to prosecute avoidance actions…

Introduction

On October 31, 2008, VeraSun Energy Corporation (“VeraSun”), and 24 of its affiliates or subsidiaries filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware.  Nine months after VeraSun filed for bankruptcy, the company filed its Joint Plan of Liquidation.  Thereafter, in October of 2009, VeraSun filed a…

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…

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…