On April 11 through 13, 2012, Saint Vincents Catholic Medical Centers of New York, et al. in the Saint Vincents Catholic Medical Centers of New York Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 250 complaints in the Southern District of New York.
Mass Bankruptcy Preference, Avoidance Actions, Adversary Proceedings
Recent bankruptcy preference actions and adversary proceedings illustrating treatment of most aspects of bankruptcy preference assessment, negotiation and defense, including issues of timing and strategy.
Litigation Trustee for Jennifer Convertibles Starts Bankruptcy Preference Adversary Proceedings
On on March 2 and 3, 2012, KDW Restructuring & Liquidation Services, LLC, Litigation Trustee for the Jennifer Convertibles Litigation Trust in the Jennifer Convertibles, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation in the United States Bankruptcy Court Southern District of New York .
Madoff Avoidance Defendants Say “Beam Me Up, Scotty” – One Day, 202 Motions to Withdraw Reference
On a single day, April 2, 2012, 202 motions (including 108 second motions) to withdraw the reference were filed in the Madoff SIPA adversary “claw back” proceedings. This spike brought to 983 the number of motions were filed by defendants seeking to have their cases heard by the U.S. District Court, rather than the U.S. Bankruptcy Court, for the Southern District of New York. Out of the 1140 Madoff adversary proceedings, defendants in 760 have sought transfer to the District Court.
Foreign Representative, Liquidator of Fairfield Sentry Limited Files More Bankruptcy Adversary Proceeding Avoidance Claims under BVI Insolvency Act of 2003
Fairfield Sentry Limited and Kenneth Krys, as Foreign Representative and Liquidator (“Fairfield Sentry”) has brought an additional wave of 46 bankruptcy adversary proceedings in the Chapter 15 bankruptcy case of “the largest of all so called ‘feeder funds’ to maintain accounts with [Bernard L. Madoff Investment Securities LLC]”. With the filing of these additional complaints, the total avoidance actions brought by Fairfield Sentry reaches 227. The claims in these proceedings are brought under the laws of the British Virgin Islands (“BVI”). The in the Chapter 15 bankruptcy case of “the largest of all so called ‘feeder funds’ to maintain accounts with [Bernard L. Madoff Investment Securities LLC]”.
Orleans Homebuilders, Inc. Unsecured Creditor Agent Starts Bankruptcy Preference Adversary Proceedings
On February 16, 2012, J.H. Cohn, LLP, as Unsecured Creditor Agent in the Orleans Homebuilders, Inc. Bankruptcy, commenced mass Chapter 5 preferential transfer recovery litigation in the District of Delaware. The proceedings add insult to injury. Each defendant now knows that the Debtors chose not to invoke the reorganization plan’s “Litigation Protocol” to stop the the avoidance action against it.
ManagedStorage International, Inc. Bankruptcy Preference Adversary Proceedings Filed
On on January 12, 2012 and January 13, 2012, Jeoffrey L. Burtch, Chapter 7 trustee in the ManagedStorage International, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 55 complaints in the District of Delaware.
Anderson News, LLC Bankruptcy Preference Adversary Proceedings
On on December 19, 2011, Anderson News, LLC, as debtor in possession, commenced Chapter 5 preferential transfer recovery litigation against multiple former suppliers in the District of Delaware.
The Penn Traffic Company Plan Administrator Starts Bankruptcy Preference Adversary Proceedings
On from November 8 to November 17, 2011, WDC Solutions, Ltd., as Plan Administrator in the The Penn Traffic Company, et al. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 62 complaints in the District of Delaware .
Chapter 7 Trustee Starts BH S&B Holdings, LLC aka Steve & Barry’s Bankruptcy Preference Adversary Proceedings
On from November 8, 2011 to November 16, 2011, Robert L. Geltzer, Esq., as Chapter 7 Trustee in the BH S&B Holdings, LLC aka Steve & Barry’s Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 79 complaints in the Southern District of New York.
CEI Liquidation Estate f/k/a Champion Enterprises, Home Builders Bankruptcy Preference Adversary Proceedings
On November 11, 2011 and December 12, 2011, Bruce H. Matson, Creditor Trustee of the CEI Liquidation Trust in the CEI Liquidation Estate f/k/a Champion Enterprises, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 232 complaints in the District of Delaware.