On April 18, 2011, John S Pereira, as Chapter 7 Trustee for each named Debtor in the Waterford Wedgwood USA Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 10 complaints in the Southern District of New York.

Adversary Proceedings Overview

Lead Bankruptcy Case Name (Case Number): Waterford Wedgwood USA Inc. (09-12512)

Bankruptcy Court District (Division): Southern District of New York

Petition Date: April 23, 2009

Associated Cases: 09-12559 WW Inc.; 09-12562 Waterford Wedgwood Finance, Inc.; 09-12570 Wedgwood USA, Inc.; 09-12574 Waterford Wedgwood Partners; 09-12577 Waterford Wedgwood Holdings, Inc.; 09-12598 Waterford Graphics, Inc.; 09-12602 Waterford Wedgwood Direct Marketing, Inc.; 09-12611 FCI Properties, Inc.; 09-12614 Kilbarry Inc.; 09-12618 Waterford Crystal, Inc.

Plaintiff: John S Pereira, as Chapter 7 Trustee

Number of Proceedings: 91

When Filed: Starting April 18, 2011 with 10 Additional Complaints filed on July 19, 2011

Adversary Proceeding Judge: U.S. Bankruptcy Judge Sean H. Lane

Plaintiff's Counsel: Troutman Sanders LLP (New York, New York), Lead Attorney John S. Kinzey

Avoidance Period: The complaint identifies the preference period as "the ninety day period preceding [the Debtor's] bankruptcy filing."

 

The Complaints

The complaints are only two count complaints - Section 547 Preferences and Section 502(d) and (j) Disallowance of Claims. Additionally, within the body of the Section 547 Count is a purported claim under Section 550: "By reason of the foregoing, the Trustee is also entitled to an order and judgment under § 550 of the Bankruptcy Code allowing the Trustee to recover, inter alia, the amount of the Preferential Payments."

The complaints fail the pleading standards of Bell atl. Corp. v. Twombly and Ashcroft v. Iqbal. In particular, there is an absence of any identification of the antecedent debt against which the transfers were made.

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