On February 4, 2010, Ultimate Acquisition Partners, LP d/b/a Ultimate Electronics (Delaware Case No. 11-10245) filed a motion seeking authority to engage in liquidating sales of its 46 stores. While not of the size of the Circuit City bankruptcy, the progression of the two bankruptcies is similar. The Circuit City bankruptcy is now in the midst of massive bankruptcy preference litigation. There is no reason to believe that Ultimate Electronics will not end up in the same place. In fact, the Ultimate Electronics bankruptcy looks far worse for the potential bankruptcy preference defendants. The filings made by Ultimate Electronics to date are replete with references to difficulties the debtor was having with suppliers – a bad flag for the availability of the ordinary course of business defense. For these reasons, Ultimate Electronics has been put on our bankruptcy preference watch list, even though the statute of limitations will not expire until January 26, 2013.
- Sample Complaint in the Ultimate Acquisition Partners, LP Bankruptcy Adversary Proceedings
- CADDJ APScans Report of Complaints, Answers, Dismissals, Defaults and Judgments in the Ultimate Acquisition Partners, LP Bankruptcy Preferential Transfer Recovery Adversary Proceedings
- To see a current APScans report of substantive filings made in the last 7 days, click this link.
- Click here for a brief note on the Ultimate Acquisition Partners, LP adversary proceedings.