On January 24, 2011, a hearing will be held in the Contech U.S., LLC (“Contech”) bankruptcy (Eastern District of Michigan, Southern Division ) on the Chapter 7 Trustee’s Motion for an Order Establishing Uniform Procedures and Deadlines for Certain Adversary Proceedings (the “Procedures Motion”). The Chapter 7 Trustee, Gene R. Kohut, has advised the Bankruptcy Court that the he will be filing as many as 200 bankruptcy preference complaints on or before January 30, 2011. The time frames set out in the procedure motions convey the clear message that a substantial effort will be made to settle as many of the preference actions as quickly and as efficiently as possible.
Articles tagged with: negotiation and resolution process
Grede Foundries – Preference Claims, 503(b)(9) Claims Opposition Precede 363 Sale
December 22, 2009 Update: On December 21, 2009, Grede Foundries filed the affidavit of Eric W. Ek in support of the of the Debtor’s motion to authorize the sale of assets. The affidavit provides both additional background and updated information regarding the proposed Section 363 Sale to Wazata Opportunity Fund II, LLC, through its subsidiary, Iron Operating, LLC. The affidavit reveals that there was an alternative bidder at the auction.
Fluid Routing Solutions – Bankruptcy to Convert to 7, Preference Claims Coming
The other shoe in the Fluid Routing Solutions (now know as Carolina Fluid Handling Intermediate Holding Corp.) bankruptcy has finally dropped. On September 14, 2009, slightly more than 5 months from the 363 sale of most it operations, the Debtors filed a motion for an order converting the Debtors’ chapter 11 cases to cases under chapter 7 of the Bankruptcy Code. The motion was granted on September 28, 2009 and the trustee was appointed on October 2, 2008. We have provided a DocSheet for the period after the conversion of the Fluid Routing Chapter 11 to Chapter 7.
For suppliers, this is not the worst of the bad news. The really bad news for suppliers – the only hope of the Debtors’ trustee to avoid administrative insolvency is recovery of $2.5 million in preference claims.
Cadence Innovations – Best, Worst Examples of Using 503(b)(9) Claims to Settle Bankruptcy Preference Claims
Increasing instances of administrative insolvency, especially in the automotive sector, have caused many suppliers to question the value of 503(b)(9) claims. Even when administrative expense claims are impaired, however, 503(b)(9) claims can be worth substantially more than their face amounts in settlements of bankruptcy preference claims. Seldom do you see in one case, much less in one settlement order, the absolute worst and among the best examples of using this strategy. A recent settlement order in the Cadence Innovation bankruptcy provides this rare opportunity.
Retailer 99 Cent Stuff Inc. – Final Set of Preference Actions Filed
In what has aready been a very active case for Adversary Proceedings for recovery of bankruptcy preferences, the plan trustee for 99 Cent Stuff, Inc. filed 13 more banrkuptcy preference actions this week, including 7 today.
Pike Family Nurseries Liquidation – Trustee Estimates Net Preference Claim Recoveries
Trustee in Pike Family Nurseries Bankruptcy Liquidation Case Estimates Net Preference Claim Recoveries of $500,000 Will be Realized by 12/31/2009.
The case of:
In Re: Pike Nursery Holding LLC, d/b/a Pike Family Nurseries
d/b/a Pike Nurseries (“Pike”), Case No. 07-79129 in the United States Bankruptcy Court for the Northern District of Georgia