Introduction
Earlier this month, the Liquidating Trustee in the Intermet bankruptcy filed preference actions against various defendants. This post will look at the nature of Intermet’s business, why the company filed for bankruptcy and the circumstances behind the formation of the Liquidating Trust that is pursuing the preference actions.
As I often do on this blog, much of the information used in this post comes from information provided in the Debtors’ Declaration in Support of its Chapter 11 Petitions. Intermet filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on August 12, 2008 (the “Petition Date”). In support of its bankruptcy filings, Intermet filed a Declaration of William H.
Introduction
Recently, the Plan Administrator for the Goody’s Family Clothing bankruptcy commenced adversary actions against various defendants in the United States Bankruptcy Court for the District of Delaware. The Goody’s Plan Administrator was appointed pursuant to Goody’s plan of reorganization. The Bankruptcy Court approved Goody’s plan on October 7, 2008, approximately four months after the company filed for bankruptcy.
Goody’s Second Bankruptcy Filing Goody’s emergence from bankruptcy was short lived. On January 13, 2009, the reorganized Goody’s filed another petition for bankruptcy in Delaware. Goody’s second bankruptcy, also filed as a chapter 11 reorganization, began only three months after the company’s plan of reorganization was approved by the Court in the first bankruptcy proceeding. The Preference Actions The preference actions recently filed by the Plan Administrator seek the recovery of transfers made prior to the commencement of the first bankruptcy proceeding. According to recent court filings, the Plan Administrator filed the preference actions in an effort to offset any avoidable transfers against allowed claims under section 503(b)(9) of the Bankruptcy Code. These adversary actions, along with both of Goody’s bankruptcy proceedings, are before the Honorable Christopher S.