In a positive decision for trade vendors and non-debtor suppliers, the Eleventh Circuit, in Auriga Polymers Inc. v. PMCM2, LLC, held that a Section 503(b)(9) post-petition priority payment received by a creditor for goods received during the 20 day period before the petition date did not diminish its subsequent new value preference defense. 40
Carl D. Neff
Carl D. Neff is a Delaware licensed attorney with the law firm of Pierson Ferdinand LLP and is based in Delaware. Carl’s practice focuses in the areas of corporate and commercial litigation before the Delaware Court of Chancery, the Delaware Supreme Court, the Delaware Superior Court and the District of Delaware.
Chapter 13 – Analysis of the Debt Limit under Section 109(e) of the Bankruptcy Code
In a Chapter 13 bankruptcy, also known as a wage earner’s plan, individual debtors may be permitted to retain their property, and develop a plan to repay a portion or all of their debts. A debtor will propose a repayment plan to make installment payments to creditors over a 36 to 60 month period.
A…
Preferred Communication Systems, Inc. Files for Bankruptcy
Preferred Communication Systems, Inc. (“PCSI” or “Debtor”) filed for chapter 7 bankruptcy before the United States Bankruptcy Court for the District of Delaware on July 28, 2021.
This bankruptcy proceeding constitutes a rare example of a debtor listing more assets than debt. Per PCSI’s Schedules, the Debtor lists approximately $1.1 million in assets, and…
Pipeline Foods, LLC Files for Chapter 11 Bankruptcy Protection in Delaware
Earlier this month, on July 8, 2021, Pipeline Foods, LLC and its affiliated debtors (“Pipeline”) filed for Chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. The debtors’ bankruptcy cases are jointly administered before the Honorable Karen B. Owens under Case No. 21-11002.
Pipeline’s Chief Executive Officer, Anthony Sepich,…
Face Mask Requirement Modified in Delaware District Court and Bankruptcy Court
Recently, on July 13, 2021, the Chief Judge of the United States District Court for the District of Delaware issued a Revised Standing Order lifting the requirement that face masks be worn in public areas of the courthouse by those who are fully vaccinated against COVID-19. The Revised Standing Order impacts each of the courthouses…
New Judge Appointed to the Delaware Bankruptcy Court
On April 6, 2021, J. Kate Stickles was sworn in as the newest judge of the United States Bankruptcy Court for the District of Delaware. Judge Stickles becomes the latest judge to join the Delaware Bankruptcy Court since Judges John T. Dorsey and Karen B. Owens were sworn onto the bench in 2019.
Judge Stickles…
Insys Liquidation Trust Asserts Preference Claims in the Delaware Bankruptcy Court
Starting on February 18, 2021, Insys Liquidation Trust (“Insys Trust”), the liquidation trust appointed by the United States Bankruptcy Court for the District of Delaware to prosecute claims on behalf of Insys Therapeutics, Inc., filed approximately 53 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547, 548, 549 and…
Nine Point Energy Files for Chapter 11 Bankruptcy Protection in Delaware
Another energy company has succumbed to bankruptcy in the wake of the Covid-19 pandemic.
Nine Point Energy Holdings, Inc., a private exploration & production company focused on the Williston Basin, and its affiliates, including Foxtrot Resources LLC, filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware, on March…
Champion Property Holdings Files for Bankruptcy Protection in Delaware
Champion Property Holdings, LLC and Anglin Cultured Stone Products LLC (“Debtors”) each filed for Chapter 11 bankruptcy protection with the Delaware Bankruptcy Court on February 10, 2021.
According to Debtors’ Petitions, their assets total between $100k – $500k, and their liabilities total between $1 million and $10 million.
A Subchapter V Trustee was appointed to…
Wardman Hotel Owner, LLC Files for Bankruptcy in Delaware
Wardman Hotel Owner LLC (“Wardman” or “Debtor”) filed for Chapter 11 bankruptcy on January 11, 2021, ending its management contract with Marriott International. The Chapter 11 petition was filed in the U.S. Bankruptcy Court for the District of Delaware.
The Wardman Park, one of the largest hotels in Washington, D.C. with 1,152 rooms, opened in…