Delaware Bankruptcy Court

Decision in American Remanufacturers, Inc. Holds That an Agreement Creating Mutual Obligations Can Provide a Defense to a Preference Action

06/30/11

Summary

In a 56 page opinion published June 9, 2011, Judge Walsh ruled that a method of operating in which all of the credits and debits between two companies were netted out allows this same method to be used in calculating a set-off defense in preference litigation. Judge Walsh’s opinion is available here (the “Opinion”).

Background

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Decision in New Century TRS Holdings, Inc. Holds That Publication in 2 Newspapers is Insufficient to Grant a Motion for Summary Judgment

06/15/11

Summary

In a 14 page opinion published June 7, 2011, Judge Carey ruled that publication of notice in only two newspapers was insufficient information to grant a motion to dismiss based on adequacy of notice. Judge Carey’s opinion is available here (the “Opinion”).

Background

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Trustee in WL Homes Bankruptcy Commences Preference Actions

02/06/11

Introduction

In January of this year, George L. Miller, the chapter 7 trustee (the "Trustee") in the WL Homes bankruptcy, began filing avoidance actions against various creditors.  As alleged in the complaints, the Trustee seeks the recovery of what he deems are "preferential transfers" pursuant to 11 U.S.C. section 547(b) of the Bankruptcy Code.  This post will look briefly at the WL Homes bankruptcy, as well as provide information on common issues that arise in preference litigation.

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