Section 547 Bankruptcy Code Delaware

Starting on September 12, 2017, Peter Kravitz, as Settlement Trustee of the Samson Settlement Trust, filed approximately 293 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547, 548 and 550 of the Bankruptcy Code.

Samson Resources Corporation and its affiliated debtors filed voluntary petitions for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on September 16, 2015 under Chapter 7 of the Bankruptcy Code.  The Debtors were an onshore oil and gas exploration and production company with interests in various oil and gas leases primarily located in Colorado, Louisiana, North Dakota, Oklahoma, Texas, and Wyoming.  On February 13, 2017, the Court entered an order confirming the Global Settlement Joint Chapter 11 Plan of Reorganization of Samson Resources Corporation and Its Debtor Affiliates. The cases are jointly administered pursuant to Rule 1015(b) of the Bankruptcy Rules.

The various avoidance actions are pending before the Honorable Christopher S. Sontchi.  As of the present date, the Pretrial Conference has not yet been scheduled.

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 cneff@foxrothschild.com.

Earlier this month, Avidity Partners, LLC (“Avidity”), in its role as claims agent for the bankruptcy estates of AbitibiBowater, Inc., et al. (“Debtors”), began filing avoidance actions against various defendants.  As alleged in the complaints, on April 16, 2009, Debtors filed petitions for bankruptcy with the United States Bankruptcy Court for the District of Delaware.  As I reported in a prior post concerning the AbitibiBowater bankruptcy, going in to bankruptcy Debtors were one of the largest newsprint producers in the world (my prior post regarding the AbitibiBowater bankruptcy is available here for review).

On November 23, 2010, the Delaware Bankruptcy Court approved Debtors’ Second Amended Joint Plan of Reorganization.  Debtors’ Plan of Reorganization became effective December 9, 2010.  Under the Plan, Debtors appointed Avidity as claims agent to litigate and/or settle avoidance actions pursuant to sections 547 and 548 of the United States Bankruptcy Code.

The AbitibiBowater avoidance actions, along with the AbitibiBowater bankruptcy proceeding, are before the Honorable Kevin J. Carey.  Judge Carey is the Chief Judge of the Delaware Bankruptcy Court.  Counsel for the Debtors’ claims agent includes the Bayard Firm and the law firm of Paul, Hastings, Janofsky & Walker LLP.

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.