Preference Litigation

In the month of February 2016, Charles A. Stanziale, Jr., in his capacity as the Chapter 7 Trustee of BMT-NW Acquisition, LLC (“Debtor”), filed approximately 49 preference actions seeking the avoidance and recovery of alleged preferential actions under Sections 547 and 550 of the Bankruptcy Code.

By way of background, the Debtor filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code on February 14, 2014.  On the same day, Mr. Stanziale was appointed as the Chapter 7 trustee to the Debtor’s bankruptcy estate.

By way of update to the Capsule International Holdings preference action filings (see original post here), the Official Committee of Unsecured Creditors (the “Committee”) recently filed a Motion for Authority to Settle Classes of Preference Claim Controversies Pursuant to Bankruptcy Rule 9019(b) and to Modify Compromise Procedures (the “Motion”).

As detailed in this previous post, the Liquidating Trustee appointed to prosecute preference actions in the RadioShack bankruptcy proceeding filed approximately 383 preference actions in late October and early November of this year.

On October 27, 2013, Green Field Energy Service, Inc. and a number of subsidiaries (the “Debtors”) filed for bankruptcy under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.  We initially published a blog post about the filing here: Green Field Energy Files for Bankruptcy Protection in Delaware.

Since the time of our last post on August 24, 2015, Alan D. Halperin, the Trustee of the FBI Wind Down, Inc. Liquidating Trust has filed 94 additional preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code.

Defenses to a Preference Action