Bankruptcy Preference Creditor's Digest
Attorneys Defending Bankruptcy Bankruptcy Preference Claims Nationwide: 888.547.5170
Article List for for Recticel North America Bankruptcy
27 Automotive Suppliers File Chapter 11 Bankruptcies in 2009; End of Year Status Summary; Likelihood of Bankruptcy Preference Recovery
Pressures in the global automotive industry forced 27 FN1 automotive parts and component manufacturers and 2 automakers t
o seek Chapter 11 bankruptcy protection in 2009. The number of filings is only the headline of the story. While estimated trade creditor distributions on prepetition claims swung the spectrum of 100% to 0%, estimated recoveries of less than 2 percent predominate. And more trade creditor pain looms in several bankruptcies, as bankruptcy preference action recoveries are either included in liquidation budgets, are necessary to avoid administrative insolvency or are likely to be sought by plan administrators and liquidation trustees.
This article provides a comprehensive list of the 27 automotive supplier Chapter 11 bankruptcies in 2009, together with status at the end of 2009, estimated trade creditor recoveries and the potential for avoidance actions. »»» Read rest of article . . .
Recticel Interiors Bankruptcy – Background, Petition Information and Assessment of Direction
Recticel North America, Inc. (“Recticel NA”) and its subsidiary, Recticel Interiors North America, LLC (“Recticel Interiors”), filed bankruptcy on October 29, 2009 with the express aim of terminating the automotive parts supply contracts with its two largest customers – Johnson Controls, Inc. and Inteva Products, LLC. According to the debtors’ affidavit filed with the petitions, due to pricing issues, the supply contracts with these two customers alone had caused the debtors’ to incur “losses, on average, of approximately $600,000 per month on account of the Johnson Agreement and approximately $265,000 per month on account of the Inteva Agreement… .”
The following post provides basic identifying information about the bankruptcy, summarizes the debtors’ business, describes the debtors’ corporate structure, and gives a brief initial assessment of the direction of the bankruptcy. »»» Read rest of article . . .
BANKRUPTCY CREDITOR - ARTICLES, RESOURCES
- BANKRUPTCY PREFERENCE BASIC CONCEPTS, DEFENSES
- Introductory Concepts
- The Preferential Payment or Transfer
- Contemporaneous Exchange Defense
- Ordinary Course of Business Defense
- Subsequent New Value Defense
- Multiple Payments - Multiple Defenses
- Books and Records
- Basic Bankruptcy Preference Terminology
- A Three Question, Preliminary Self Assessment of a Bankruptcy Preference Claim
- Lesser Known Defenses
- THE PROCESS OF BANKRUPTCY PREFERENCE RESOLUTION
- The Bankruptcy Preference Recovery Decision – Who Makes It, How It Is Made
- Bankruptcy Preference Claims Timing – The Statute of Limitations, Other Factors
- The Art and Science of Negotiating Bankruptcy Preference Claims
- Bankruptcy Preference Demand Letters
- The Avoidance Complaint
- Do I Need a Lawyer to Negotiate or Defend a Bankruptcy Preference Claim?
- Creditors Committee Role in the Bankruptcy Preference Process
- Resources
- Bankruptcy Creditor Annotated Statutory Material – Bankruptcy Code
- Sec. 101 – Definitions
- Sec. 362 – Automatic Stay
- Sec. 363 – Use, Sale, Lease of Property
- Sec. 365. – Executory Contracts, Unexpired Leases
- Sec. 501 – Creditors, Claims
- Sec. 502 – Allowance of Claims, Interests
- Sec. 503 – Administrative Expenses
- Sec. 507 – Priorities
- Sec. 544 – Trustee as Successor
- Sec. 546 – Limitations on Avoiding Powers
- Sec. 547 – Preferences
- Section 548 – Fraudulent Transfers and Obligations
- Sec. 550 – Liability of Transferee of Avoided Transfer
- Bankruptcy Creditor Annotated Statutory Material – Bankruptcy Code
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