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.
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.
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.
Jeoffrey L. Burtch, Signature Aluminum Chapter 7 Trustee Starts Bankruptcy Preference Adversary Proceedings
On March 28, 2011, Jeoffrey L. Burtch, Chapter 7 Trustee in the Signature Aluminum Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of preference complaints in the United States Bankruptcy Court for the District of Delaware.
Indalex Holdings Finance Chapter 7 Trustee Bankruptcy Preference Adversary Proceedings
On March 8, 2011, George L. Miller, in his capacity as Chapter 7 Trustee in the Indalex Holdings Finance, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of complaints in the United States Bankruptcy Court for the District of Delaware. Starting in February, the Trustee sent out approximately 300 demand letters so the number of preference complaints ultimately filed should be less than that number. With the statute of limitations not expiring until March 20, 2011, the trustee still has plenty of time to file claims he is unable to resolve. For defense counsel, a major challenge will be to assess the potential impact on the value of preference defendants’ Section 502(h) claims in the event of a substantial recovery in the Trustee’s pending litigation against Sun Capital Partners et. al.
Chapter 7 Trustee for the Bankruptcy Estate of MCC (f/k/a Monaco Coach Corporation) et al Starts Bankruptcy Preference Adversary Proceedings
On March 4, 2011, George L. Miller, Chapter 7 Trustee for the Bankruptcy Estate of MCC (f/k/a Monaco Coach Corporation) et al commenced bankruptcy preference recovery litigation with the filing of 67 complaints in the United States Bankruptcy Court for the District of Delaware.
Liquidating Trustee for the Fleetwood Liquidating Trust Starts Bankruptcy Preference Adversary Proceedings
On March 4th and 6th, 2011, SLTNTRST LLC, the Liquidating Trustee for the Fleetwood Liquidating Trust in the Fleetwood Enterprises, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of a total of 285 complaints in the United States Bankruptcy Court for the Central District Of California (Riverside).
Pirinate Consulting Group, LLC, as Claims Agent for Spansion, Inc. Starts Bankruptcy Preference Adversary Proceedings
On February 25 and 26, 2011, Pirinate Consulting Group, LLC, as Claims Agent for the Chapter 11 Estates of Spansion, Inc. et al. commenced Chapter 5 preferential transfer recovery litigation with the filing of 61 complaints in the United States Bankruptcy Court for the District of Delaware. Of the 61 initial complaints, 7 target law firms, 3 target investment banking firms and 2 name major accounting firms. From these 12 professional organizations, the total amount sought exceeds $16 million.
Chapter 7 Trustee for the Bankruptcy Estates of Sunset Aviation, Inc., et al. Starts Preference Adversary Proceedings
On February 24, 2011, Alfred T. Giuliano, Chapter 7 Trustee for the Bankruptcy Estates of Sunset Aviation, Inc., et al. commenced Chapter 5 preferential transfer recovery litigation with the filing of 200 complaints in the United States Bankruptcy Court for the District of Delaware. By order entered on August 19, 2010 the estates of Regal Jets, LLC, Sunset Aviation, Inc, and JetDirect Aviation, Inc. were substantively consolidated. Each of the 3 debtors filed its respective bankruptcy petition on different dates, with the third filing occurring more than 60 days after the first filing. The Trustee seeks to use the same petition date for all three debtors, but the substantive consolidation order does not provide for retroactive consolidation – i.e. it is not nun pro tunc. The question: Will the retroactive petition dates still fly?
Liqudating Trustee of Brunos Supermarkets Starts Bankruptcy Preference Adversary Proceedings
On January 25, 2011, William S. Kaye, Liqudating Trustee in the Brunos Supermarkets, LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 151 complaints in the United States Bankruptcy Court for the Northern District of Alabama.
Qimonda Richmond, LLC and Qimonda North America Corp. Start Bankruptcy Preference Adversary Proceedings
Between February 11 and February 17, 2011, Qimonda Richmond, LLC and Qimonda North America Corp., debtors in possession, filed 32 Chapter 5 preferential transfer complaints in the United States Bankruptcy Court for the District of Delaware.