OTC International – High Concentration of Foreign Bankruptcy Preference Defendants

Between March 31 and April 2, 2010 (one day before the expiration of the statute of limitations), the Plan Administrator in the OTC International, LTD. nka IBP Corp. bankruptcy (Southern District of New York – Petition 08-11181) filed 78 adversary proceedings seeking recovery of alleged preferential transfers totaling more than $8.5 million.   No less than 34 avoidable transfer recoveries are being sought from foreign suppliers – 24 located in Italy and 10 spread among Hong Kong, India, Germany, Thailand and Tunisia. Adversary proceedings to recover avoidable preferences against foreign suppliers are not unusual.  However, these preference actions are worthy of note because of concentration of overseas defendants, both in terms of number of defendants and the relative size of the preference claims against them. To see an APScan of the 78 adversary proceedings, click this link.