On on December 5, 2012, Charles A. Stanziale, Jr., Chapter 7 Trustee in the Conex Holdings, LLC Bankruptcy, commenced mass Chapter 5 preferential transfer recovery litigation in the Bankruptcy Court for the District of Delaware. The Debtors bankruptcy case was commenced by the filing of an involuntary petition by three secured creditors, and trade creditors seemingly were caught off guard. Unlike many Chapter 7 involuntary cases, the pool of trade creditor defendants is quite large and many of the preference claims are substantial.
The Chapter 7 Trustee apparently does not have access to much of the Debtors’ trade creditor information. The complaints are weak in the identification of antecedent debt. However, the Trustee may benefit from some leniency in pleading standard application afforded Chapter 7 trustees by the Delaware Bankruptcy Court.
Debtor and Bankruptcy Case Overview
Lead Bankruptcy Case Name (Case Number): Conex Holdings, LLC (11-10501)
Bankruptcy Court District (Division): District of Delaware
Petition Date: February 20, 2011 (Order for Relief entered February 24, 2011
Associated Debtors: Conex Holdings, LLC, Conex International, LLC and Advantage Blasting & Coating, Inc.
Debtors' Industry Group: Mechanical Contractors (SIC 1711-14)
Debtors' Business: General Mechanical Contracting and Industrial Services
Primary Industry Groupings of Defendants: Petrochemical and Other Process Industries
Adversary Proceedings Overview
Plaintiff: Charles A. Stanziale, Jr., Chapter 7 Trustee
Number of Proceedings: 121
When Filed: from December 5, 2012 to April 22, 2013
Adversary Proceeding Judge: U.S. Bankruptcy Judge Christopher S. Sontchi
Plaintiff's Counsel: McCarter & English, LLP by its attorneys Katharine L. Mayer, Charles A. Stanziale, Jr., Jeffery T. Testa and Michael J. Reynolds
Avoidance Period: The complaint identifies the preference period as the period "[a]t or within 90 days prior to the Petition Date".