Last year, the Liquidating Trustee (the “Trustee”) in the Midway Games bankruptcy began filing avoidance actions against creditors of the bankruptcy estate. Midway Games (“Midway” or the “Debtor”) filed petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware on February 12, 2009. For those not familiar with this bankruptcy proceeding, Midway developed and distributed video games throughout the North America, Europe and Asia. See Debtor’s Declaration in Support of First Day Motions (“Declaration”) at *4.
On May 21, 2010, the Bankruptcy Court entered an Order confirming Midway’s joint chapter 11 plan of liquidation (the “Plan of Liquidation”). Under the Plan of Liquidation, Buchwald Capital Advisors LLC was appointed the Trustee. The Trustee’s responsibilities include collecting and distributing assets of Midway. More specifically, the Trustee is responsible for commencing causes of actions on behalf of the bankruptcy estate.
The Midway Games bankruptcy, as well as the avoidance actions filed by the Trustee, are pending before the Honorable Kevin Gross. The Trustee is represented by Nieger LLP and Stevens & Lee, P.C.
Jason Cornell practices with the law firm Fox Rothschild LLP in Wilmington, Delaware. You can reach Jason at 302 427 5512, or jcornell@foxrothschild.com.
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.