DuraFiber Technologies (DFT) Inc. - Preference Defense Lawyer
On October 6, 2017 (the "Petition Date"), each of the Debtors filed voluntary petitions for relief under chapter 7 of the Bankruptcy Code.
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