On December 9 and 10 , 2010, the Official Committee of Unsecured Creditors of PPI Holdings, Inc. and 7 associated debtors (the “Debtors”) started its bankruptcy preference recovery efforts with by filing 182 complaints. The PPI Holdings preference actions are the leading edge of a tsunami of avoidable transfer recovery actions that are going to hit the automotive sector as the legacy from the Section 363 sales that dominated the sector bankruptcies in 2009.
PPI Holdings complaints are relatively unremarkable, but suffer from the usual malaise of insufficient factual allegations and naked legal conclusions with respect to elements of the plaintiff’s case. Also, the identification of the debtor making the payment is a “you pick one” with the Exhibit A identification of transfers often identifying the transferror entity as “PPI Holdings, Inc. on behalf of MPI International, Inc. and Skill Tool & Die Corp.”
ASK Financial is lead counsel to the plaintiff. ASK financial is currently plowing through the numerous preference actions it filed in 2010 including: 1749 in Quebecor, the 113 actions in Asendia Brands, 83 actions in Consolidated Bedding, and the 431 actions in WCI Communities. ASK Financial knows how to move mass preference actions quickly. For those who want to settle and can make an cogent presentation of available defenses, ASK Financial usually provides an opportunity for a meeting of the minds on a reasonable settlement early on.
ADVERSARY PROCEEDINGS OVERVIEW
Lead Bankruptcy Case Name (Case Number): PPI Holdings, Inc. (08-13289)
Petition Date: December 12, 2008
Filed in: United States Bankruptcy Court for the District of Delaware
Associated Cases: The Associated Debtors are: International Fineblanking Corporation; PPI Sub I, Inc. (f/k/a MPI International Holdings, Inc.); PPI Sub 1 A, Inc. (f/k/a MPI International, Inc.); Michigan Fineblanking. Inc.; PPI Sub-Holdings, Inc.; Precision Parts International Services Corp.; PPI Sub 2, Inc. (f/k/a Skill Tool & Die Holdings Corp.); and PPI Sub 2A, Inc. (f/k/a Skill Tool & Die Corp.).
Plaintiff: The Offical Committee of Unsecured Creditors of PPI Holdings, Inc. pursuant to November 12, 2010, the Court entered an Order Granting Motion of Debtor and the Official Committee of Unsecured Creditors for Derivative Standing to Permit Committee to Prosecute Chapter 5 Causes of Action on Behalf of the Debtors Estate
Number of Proceedings: 79 on December 9, 2010; 103 on December 10,2010
When Filed: December 9, 2010
Adversary Proceeding Judge: Kevin Gross
Plaintiff’s Counsel: ASK Financial LLP (Eagan, Minnosota) through its counsel Gary D. Underdahl and Stevens & Lee, P.C. (Wilmington, Delaware) through its attorney Joseph H. Huston, Jr.
Avoidance Period: The complaint identifies the preference period as starting on September 13, 2008 and ending on December 12, 2008.
To review the Current APScans for the PPI Holdings adversary proceedings, click this link.