AbitibiBowater Commences Avoidance Actions
04/10/11
Earlier this month, Avidity Partners, LLC ("Avidity"), in its role as claims agent for the bankruptcy estates of AbitibiBowater, Inc., et al. ("Debtors"), began filing avoidance actions against various defendants. As alleged in the complaints, on April 16, 2009, Debtors filed petitions for bankruptcy with the United States Bankruptcy Court for the District of Delaware. As I reported in a prior post concerning the AbitibiBowater bankruptcy, going in to bankruptcy Debtors were one of the largest newsprint producers in the world (my prior post regarding the AbitibiBowater bankruptcy is available here for review).
On November 23, 2010, the Delaware Bankruptcy Court approved Debtors' Second Amended Joint Plan of Reorganization. Debtors' Plan of Reorganization became effective December 9, 2010. Under the Plan, Debtors appointed Avidity as claims agent to litigate and/or settle avoidance actions pursuant to sections 547 and 548 of the United States Bankruptcy Code.
The AbitibiBowater avoidance actions, along with the AbitibiBowater bankruptcy proceeding, are before the Honorable Kevin J. Carey. Judge Carey is the Chief Judge of the Delaware Bankruptcy Court. Counsel for the Debtors' claims agent includes the Bayard Firm and the law firm of Paul, Hastings, Janofsky & Walker LLP.
For more information regarding Delaware preference litigation, below are prior posts I have written on the subject:
Decision in Archway Cookies Grants Summary Judgment Based on Ordinary Course of Business Defense
Using the Solvency Defense in a Preference Action: In re Bernard Technologies
Jason Cornell practices with the law firm Fox Rothschild LLP in Wilmington, Delaware. You can reach Jason at 302 427 5512 or [email protected].