Articles tagged with: Adversary Proceedings

Articles, materials addressing bankruptcy adversary proceedings, including complaints, answers, discovery and other pleadings

Tribune Company Creditors Committee Brings Mass “Insider” Preferential Transfer Recovery Actions

On October 3rd and 4th, 2010, the Official Committee of Unsecured Creditors of Tribune Company (the “Committee”, on behalf of Tribune Company, et al. (the “Debtors”) brought 209 adversary proceedings for the recovery of preferential transfers. Of these 209 complaints, all appeared to name individuals as the defendants. The primary theory of recovery is avoidance of preferential transfers to an “insider”, which designation under Section 547 of the Bankruptcy Code allows the Committee to seek avoidance of transfers made during a 1 year period prior to the bankruptcy petition filing. The amount and basis for each transfer is identified on Exhibit A to each complaint. The identified transfer bases include: “Restricted Stock Units”, “Executive Transition”, “Deferred Bonus”, “Excise Tax Gross Up” and “Phantom Equity”.

Iowa Corn Farmers Turn Back VeraSun Energy Corporation’s Threatened Bankruptcy Preference Actions

With the passage on October 31, 2010 of the 2 year statute of limitations, Iowa’s corn farmers have definitively rebuffed a threatened onslaught of preferential transfer avoidance actions by VeraSun Energy Corporation.  The 198 defendants who were named in the VeraSun preference actions only can envy the result of the tenacity and resourcefulness of these Iowa farmers.  And more than a few small business owners should eat an extra helping of corn at Thanksgiving in thanks for the corn farmers undoubted influence on VeraSun’s decision to set a $20,000 floor for bringing preference actions.  The story behind the success of the Iowa Corn Farmers has an important lesson.

Consolidated Bedding, Inc. Chapter 7 Trustee Files 83 Bankruptcy Preference Actions

Alfred T. Giuliano, Chapter 7  Trustee for the Bankruptcy Estates of Consolidated Bedding, Inc., et al. has filed 83 actions for the recovery of preferential transfers under Section 547 of the Bankruptcy Code. The initial adversary proceeding report on these preference actions can be viewed by clicking this link. The following is a summary of the proceedings.