05/10/2011 – Motion to Dismiss filed in the Madoff Adversary Proceedings by L.H. Rich Companies et al before Judge Lifland in the Southern District of New York (Manhattan). The Defendants seek dismissal of the avoidance claims of Trustee Picard pursuant to Fed. R. Civ. P. 12(b)(5) for insufficient service of process and Fed. R. Civ. P. 12(b)(6) for failure to state a claim upon which relief can be granted. The latter grounds are based on “conclusory allegations as to subsequent transferees.” Dismissal of the proceedings, however, is only one of the options available to the Court to address the challenges. The courts holding on the “substantive” issues will be less instructive to other defendants than the steps ordered by the Court to redress the deficiencies in service and pleading. Registered users, click this link to see the filing.*
The LB Litigation Trust v. Thermon Heat Tracing Services Inc. – Defendants’ Motion to Dismiss
05/10/2011 – Motion to Dismiss filed in the Lyondell Chemical Company Adversary Proceedings by Thermon Heat Tracing Services Inc. before Judge Gerber in the Southern District of New York (Manhattan). Fed. R. Civ. P. 12(b)(1) challenge to the standing of the Trustee of the LB Litigation Trust to pursue the preference claim. Estoppel, res judicata and due process challenges also are significant. A tour de force, must read with significance for most pending and “in the pipeline” preference claims. Registered Users, click this link to see the filing.*
Chapter 7 Trustee Starts Pecus ARG Holding, Inc. nka GRA Liquidation, Inc. Bankruptcy Preference Adversary Proceedings
On May 03, 2011, George L. Miller, Chapter 7 Trustee in the Pecus ARG Holding, Inc. nka GRA Liquidation, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 108 complaints in the District of Delaware (Delaware).
Distribution Agent Starts AGT Crunch Acquisition LLC Bankruptcy Preference Adversary Proceedings
On April 28, 2011, Marianne O’Toole, as Distribution Agent in the AGT Crunch Acquisition LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of ongoing complaints in the Southern District of New York (Manhattan).
JetDirect Aviation, LLC aka JetCorp., LLC Chapter 7 Trustee Starts Bankruptcy Preference Litigation
On April 28, 2011, Alfred T. Giuliano, Chapter 7 Trustee in the JetDirect Aviation, LLC aka JetCorp., LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of preference complaints in the District of Delaware. The case was filed as a Chapter 7 on May 1, 2009 so the trustee has until May 1, 2011 to complete his filings.
Böwe Systec, Inc. Bankruptcy – Largest Unsecured Creditors
Böwe Systec, Inc. and 6 associated debtors (the “Debtors” or “Böwe”) filed voluntary petitions under Chapter 11 of the Bankruptcy Code on April 18, 2011 in the Bankruptcy Court for the District of Delaware (Case No. 11-11187). The Honorable Peter J. Walsh has been assigned to the case. This initial note provides the Debtors’ consolidated list of their 20 largest unsecured creditors.
Scovill Fasteners Inc. Files Bankruptcy with Objective of Section 363 Sale
Scovill Fasteners Inc. (“Scovill Fasteners”) and 4 associated debtors (the “Debtors” ) filed voluntary petitions under Chapter 11 of the Bankruptcy Code on April 19, 2011 in the Bankruptcy Court for the Northern District of Georgia, Gainesville Division (Case No.11-21650 ). The Honorable Robert E. Brizendine has been assigned to the case. This initial note provides a brief background of the Debtors, identifies the stated direction of the case and provides the Debtors’ consolidated list of their 40 largest unsecured creditors.
“Extaordinary” Circumstances Behind Marty Shoes Bankruptcy Preference Actions
On March 16, 2011, George L. Miller, Chapter 7 Trustee for the estates of Marty Shoes Holdings, Inc. commenced Chapter 5 preferential transfer recovery litigation with the filing of 98 complaints in the United States Bankruptcy Court for the District of Delaware. The Trustee makes a gutsy admission in his preference complaints: “The Trustee finds himself in an extraordinary situation as he has been deprived of the Debtors’ books and records, though he has taken the necessary steps to locate these records.” As a result, the complaints fail to identify the antecedent debt as required to plead a prima facie case under recent Delaware Bankruptcy Court decisions.
John S Pereira, as Chapter 7 Trustee in Waterford Wedgwood USA Bankruptcy Starts Preference Adversary Proceedings
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.
Chapter 7 Trustee for the estate of Linens Holding Co., et al. Continues Bankruptcy Preference Adversary Filings
Linens Holdings, Inc. and 9 affiliates, as debtors in possession, originally commenced filing of bankruptcy preference recovery actions on March 20, 2009. The Chapter 7 trustee has continued to prosecute those actions and has filed 162 additional preference actions. The latest filings occurred on April 5,2011, and consisted of an additional 38 preference complaints.