Litigation Trustee Starts Mass NewPage Corporation Bankruptcy Preference Adversary Proceedings

From August 29, 2013 to September 6, 2013, Pirinate Consulting Group LLC, as Litigation Trustee of the NP Creditor Litigation Trust in the NewPage Corporation Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 800 complaints in the District of Delaware . Continue reading Litigation Trustee Starts Mass NewPage Corporation Bankruptcy Preference Adversary Proceedings

Liquidating Trustee Starts AES Eastern Energy, L.P. Bankruptcy Preference Adversary Proceedings

On on June 7, 2013, Eugene I. Davis Liquidating Trustee in the AES Eastern Energy, L.P. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation in the District of Delaware. At least the initial round of preference complaints mostly targeted small to mid market suppliers with preference claims amounts heavily concentrated in the low to mid five figures. Continue reading Liquidating Trustee Starts AES Eastern Energy, L.P. Bankruptcy Preference Adversary Proceedings

RG Steel Warren Starts WP Steel Venture LLC Bankruptcy Preference Recovery

On January 18, 2013, RG Steel Warren, LLC, Debtor in Possession in the WP Steel Venture LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 137 complaints in the District of Delaware . These complaints are in addition to the 287 preference complaints already filed by co-debtor RG Steel Sparrows Point LLC.  These complaints add $40 million in preference claims to the more than $107 million filed by RG Steel Sparrows Point.  The plaintiff may also be expecting that the yield on these claims will be higher than usual . . . the ordinary course of business defense appears questionable for many of the preference period payments.

Continue reading RG Steel Warren Starts WP Steel Venture LLC Bankruptcy Preference Recovery

RG Steel Sparrows Point Starts WP Steel Venture LLC Bankruptcy Preference Recovery

On from January 7 to January 9, 2013, RG Steel Sparrows Point, LLC, Debtor in Possession in the WP Steel Venture LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 287 complaints in the District of Delaware .   This plaintiff/debtor in possession has tapped a honey hole of preference claims totaling, to this point, more than $107 million. The plaintiff may also be expecting that the yield on these claims will be higher than usual . . . the ordinary course of business defense appears questionable for many of the preference period payments.

Continue reading RG Steel Sparrows Point Starts WP Steel Venture LLC Bankruptcy Preference Recovery

Liquidating Trustee of the Borders Liquidating Trust Starts Bankruptcy Preference Adversary Proceedings

On January 3, 2013, Curtis R. Smith, as the Liquidating Trustee of the BGI Creditors Liquidating Trust in the Borders Group, Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation in the Southern District of New York (Manhattan). Continue reading Liquidating Trustee of the Borders Liquidating Trust Starts Bankruptcy Preference Adversary Proceedings

Chapter 7 Trustee Starts Conex International Bankruptcy Preference Adversary Proceedings

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.

Continue reading Chapter 7 Trustee Starts Conex International Bankruptcy Preference Adversary Proceedings

Palm Harbor Liquidating Trust Starts Bankruptcy Preference Adversary Proceedings

On November 26, 2012, Brian Cejka, Trustee of the Palm Harbor Liquidating Trust in the Palm Harbor Homes, Inc. n/k/a PHH Co., Inc. Bankruptcy, commenced Section 547 preferential transfer recovery litigation in the District of Delaware. Continue reading Palm Harbor Liquidating Trust Starts Bankruptcy Preference Adversary Proceedings

Chapter 7 Trustee Starts Tana Seybert LLC Bankruptcy Preference Adversary Proceedings

On from May 11, 2012 to May 12, 2014, Robert L. Geltzer, as Chapter 7 Trustee in the Tana Seybert LLC Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 52 complaints in the Southern District of New York. Continue reading Chapter 7 Trustee Starts Tana Seybert LLC Bankruptcy Preference Adversary Proceedings

CRC Litigation Trust Starts Chem Rx Corporation Bankruptcy Transfer Avoidance Adversary Proceedings

On from April 5, 2012 to May 8, 2012, AP Services, LLC, as trustee of the CRC Litigation Trust in the Chem Rx Corporation Bankruptcy, commenced Chapter 5 preferential and fraudulent transfer recovery litigation with the filing of 93 avoidance complaints (40 complaints include 547 preferential transfer counts and 53 include constructive fraudulent conveyance claims under Bankruptcy Code Section 548 and New York Debtor and Creditor Law Section 278) complaints in the District of Delaware.   Traditional trade creditors make up less than half of the defendants.  Religious and charitable organizations are the primary targets. Continue reading CRC Litigation Trust Starts Chem Rx Corporation Bankruptcy Transfer Avoidance Adversary Proceedings

SS Body Armor Starts Bankruptcy Preference Adversary Proceedings

On April 13, 2012, SS Body Armor I Inc. et al in the SS Body Armor I Inc. Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 46 complaints in the District of Delaware. Continue reading SS Body Armor Starts Bankruptcy Preference Adversary Proceedings