Achaogen, Inc. - Preference and Fraudulent Transfer Defense Lawyer

On March 30, 2021, Edward E. Neiger, as Plan Trustee of the Achaogen Plan Trust, began filing adversarial complaints seeking to avoid preferential and/or fraudulent transfers made to individual defendants and recover the value thereof, pursuant to 11 U.S.C. §§ 547, 548, and 550, and to disallow any claims held by the individual defendants.  To date, approximately 42 such complaints have been filed.

Procedural History:

On April 15, 2019, the Debtor commenced a voluntary case under chapter 11 of the Bankruptcy Code.

On May 29, 2020, the Bankruptcy Court entered an order confirming the First Amended Plan of Liquidation, and thereby the  Plan Trust Agreement.

Pursuant to the Confirmation Order, the Plan, and the Plan Trust Agreement, the Trustee was appointed as Trustee of the Plan Trust and was granted authority to pursue avoidance actions.

These adversary actions are before the Honorable Brendan L. Shannon.

Background, as alleged by Plaintiff:

Prior to the bankruptcy filing, "the Debtor was a biopharmaceutical company focused on the
development and commercialization of innovative antibiotic treatments against certain drug
resistant infections. Its primary activities included discovering, developing and commercializing
product candidates, including conducting preclinical studies and clinical trials and providing
general and administrative support for those operations
."


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 page on Preference Defense Litigation: http://www.tobialaw.com/delaware-preference-defense-lawyer.html

If you conducted business with Debtor Achaogen, Inc.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, email us at info@tobialaw.com 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.
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