From January 19, 2011 through January 25, 2011, the liquidating trustee for Noble International Ltd. and 14 affiliates (the “Noble International”) filed 173 avoidance actions under Chapter 5 of the Bankruptcy Code in the Bankruptcy Court for the Eastern District of Michigan (Detroit Division). The filing of bankruptcy preference actions is no surprise (see our January 9, 2010 report of 2009 Automotive Supplier Bankruptcies). As part of its Plan of Liquidation, Noble International had estimated recovery of $3.85 million through avoidance actions. The complaints, however, are remarkable.
Articles tagged with: Noble International
Noble International-Two Debtors not Insolvent?
As discussed in a prior post on the bankruptcy of Noble International Ltd., the parent and 14 subsidiaries have filed for bankruptcy. We have stressed the need to carefully identify your customer. We wanted to use the Noble International bankruptcy as a case study for point and were surprised to find that two debtors did not appear to be “insolvent” when they filed their Chapter 11 petitions.
»» Continue reading about the statistical information in the Chapter 11 petitions
Noble International – No Supplier Breadcrumbs in First Day Motions
The bankruptcy of another substantial automotive supplier (the fifth in 2009) came with no first day motions that might help the supplier base. However, General Motors Corporation, Ford Motor Company and Chrysler, LLC once more have stepped up with DIP financing to keep a supplier operating while the parts are resourced.
Noble International, Ltd. Bankruptcy – Score: Subs In 14 – Subs Out 31
We constantly stress the importance for a bankruptcy creditor to confirm the identity of its client in bankruptcy (see our article “10 Questions a Commercial Bankruptcy Creditor Must Ask and Answer ASAP”). If there was ever a poster child for the need to identify your customer it is the bankruptcy of Noble International, Ltd.
»» Continue reading about customer identification importance in Noble International bankruptcy