August 11, 2020, Southern District of Ohio – The Debtors are manufacturers of automotive acoustical services including reclaimed cotton acoustical insulation, polypropylene splash shields, and fender insulators, and resin-free mouldable acoustical insulators. The Defendant, our client, is a company based in Massachusetts and is engaged in the business of providing …
Read More »More than 300 Clawback Actions Initiated in Verity Health System of California, Inc. Bankruptcy Case
September 1, 2020, California – Recently, the plaintiffs in the bankruptcy case of Verity Health System of California Inc., et al ( the “Debtors”) initiated more than 300 adversary proceedings against several defendants to set aside and recover alleged “preferential transfers” for the benefit of the Debtors’ estate. According to …
Read More »Tenth Circuit – A Bankruptcy Trustee Cannot Clawback Payment Made to a Law Firm From a Loan
August 25, 2020, Colorado – Eric Wagenknecht and his wife, Susan Colbert, filed for relief under Chapter 13 of the Bankruptcy Code on January 19, 2016. The case got converted to Chapter 7 on April 28, 2017. Jared Walters was appointed as the Chapter 7 trustee for the estate. Prior …
Read More »Hooper Holmes, Inc. Liquidation Trust Initiates Adversary Proceedings in Hooper Holmes, Inc. Bankruptcy Case
August 14, 2020, New York – Last week, Hooper Holmes, Inc. Liquidation Trust (the “Plaintiff” or the “Trust”) initiated more than twenty (20) adversary proceedings in the Hooper Holmes, Inc. d/b/a Provant Health, et al. (the “Debtors”) bankruptcy case. Hooper Holmes, Inc. is a national health risk assessment provider in …
Read More »Ex-Nine West Insiders Move to Dismiss Trustee’s Lawsuit Over $1.5B Payments, Citing Safe Harbor Provisions Under Sec. 546(e)
August 11, 2020, New York – Last week, the former shareholders, officers and directors of a bankrupt footwear and apparel company, Nine West Holdings Inc., (“Debtor”) filed a motion to dismiss to end a $1.5 billion lawsuit initiated by the Nine West litigation trust, pursuant to the safe harbor of …
Read More »Dismissed For No Payment
July 25, 2020, Southern District of Ohio – The Debtor was a leading distributor of firearms and related outdoor products through seven regional offices, including Atlanta; Arlington, Texas; Ohio; Montana; Philadelphia; and Sacramento, California. In addition to guns and ammunition, the Debtor sold knives, sighting scopes, fishing tackle, game calls, …
Read More »More than 80 Adversary Proceedings Filed in Little River Healthcare Holdings, LLC, et al
August 6, 2020, Western District of Texas – Little River Healthcare Holdings LLC, the operator of two rural hospitals in Texas and other healthcare-related centers recently initiated more than 80 lawsuits against several creditors seeking to recover preferential transfers of property that occurred during the ninety (90) day period before …
Read More »Reagor Dykes Auto Group Trust Brings $9M Lawsuit Against AimBank
August 3, 2020, Northern District of Texas – Dennis Faulkner, the trustee of the Reagor Dykes Auto Group Creditors Liquidating Trust for the Debtors Reagor Dykes Motors, LP, et al recently initiated a lawsuit against Defendant AimBank in the U.S. Bankruptcy Court for the District of Northern Texas. The Trustee …
Read More »A Preference Transfer Made for a Labor Contract May Invoke New Value Defense Only When “Work” Begins After a “Preference”
August 1, 2020, Central District of Illinois – Defendant, a radiologist, is a former employee and shareholder of a Debtor. The Defendant began working for the Debtor in 2003. He became a shareholder in 2005 and remained a shareholder until April 2012, at which time he sold his shares in …
Read More »Trustee’s Complaint Did Not Provide Sufficient Allegations to Support Plausible Claims Against a Partnership Under the Massachusetts Fraudulent Transfer Act
May 7, 2020, Massachusetts – Gary W. Cruickshank, Chapter 7 Trustee for the bankruptcy estate of Debtor DebBlast Fitness Group, LLC (“BFG”), brought lawsuits against forty named and dozens of unnamed defendants, including Dixon Family Limited Partnership (the “Partnership”), a Delaware limited partnership whose general partner was a Defendant, Harold …
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