DuraFiber Technologies (DFT) Inc. - Preference Defense Lawyer
On October 4, 2019,David W. Carickhoff, solely in his capacity as the chapter 7 trustee (the “Trustee”) of debtor DuraFiber Technologies (DFT), Inc. and related debtors, began filing complaints seeking to avoid and recover alleged preferential and/or fraudulent transfers pursuant to Sections 547, 548, and/or 550 of the United States Bankruptcy Code.
The Debtors in these Chapter 7 cases are: DuraFiber Technologies (DFT), Inc.; DuraFiber Technologies (DFT) Enterprises, LLC; DuraFiber Technologies (DFT) Group, Inc.; DuraFiber Technologies (DFT) Holdings II, LLC; DuraFiber Technologies (DFT) Mexico Services Intermediate II Corp.; DuraFiber Technologies (DFT) Operations, LLC; DuraFiber Technologies (DFT) Scottsboro, Inc.; DuraFiber Technologies (DFT) Winfield, Inc.; Ina Fibers Holding, LLC; DSE Holding Corp.; DuraFiber Technologies (DFT) Mexico Services Intermediate I Corp.; and DFT DuraFiber Technologies Holdings, Inc.
On October 6, 2017 (the "Petition Date"), each of the Debtors filed voluntary petitions for relief under chapter 7 of the Bankruptcy Code.
These adversary actions are before the Honorable Christopher S. Sontchi.
Background, as alleged by Plaintiff:
Prior to the Petition Date, the Debtors were companies engaged in the business of manufacturing and selling reinforced textile products. The Debtors operated three manufacturing facilities in the United States: (i) a two million square foot facility in Salisbury, North Carolina; (ii) a facility in Shelby, North Carolina and (iii) a facility in Winnsboro, South Carolina. The Debtors’ headquarters were in Huntersville, North Carolina.Common Defenses in Preference Actions
The United States Bankruptcy Code provides many affirmative defenses to preference actions, contained within Section 547(c). For example, the most common defenses that may be available to a Defendant under Section 547(c) may include:
• the transfer was a contemporaneous exchange for new value given to the debtor (i.e., the debtor received something of value in exchange for the transfer); 11 U.S.C. §547(c)(1);
• after such transfer, Defendant gave new value to or for the benefit of the debtor (i.e., the Defendant extended additional credit to the Debtor after receiving the transfer) 11 U.S.C. §547(c)(4); or
• the transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the recipient (i.e., Defendant made the transfer under ordinary business terms). 11 U.S.C. §547(c)(2).For more information, see our pages on Preference Defense Litigation: http://www.tobialaw.com/delaware-preference-defense-lawyer.html and Fraudulent Transfer Defense Litigation: https://www.tobialaw.com/defense-of-fraudulent-transfer-actions.html
If you were an investor in or conducted business with DuraFiber Technologies or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed against you or your business even if not served yet, contact us here, email us at firstname.lastname@example.org or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule a free initial consultation. We can discuss the situation and share with you our initial observations at no charge.