Delaware Creditor's Rights Lawyer James Tobia HomeAdvantage Holdco, Inc. - Preference Defense Lawyer
On May 25, 2022, Plaintiff BIZ Accounting, Tax and Advisory of New York, LLC, in its capacity as Trustee of the Liquidating Trust of Advantage Holdco, Inc., et al., began filing complaints and initiating adversary proceedings, pursuant to sections 547 and 550 of the Bankruptcy Code, seeking to avoid and recover certain transfers made to the individual defendant(s) within 90 days prior to the commencement of the Debtors' Bankruptcy cases, related to the operations of Advantage Rent A Car. Approximately 15 such complaints have been filed so far.
The Debtors in these Chapter 11 cases are: Advantage Holdco, Inc.; Advantage Opco, LLC; Advantage Vehicles LLC; E-Z Rent A Car, LLC; Central Florida Paint & Body, LLC; Advantage Vehicle Financing LLC; and RAC Vehicle Financing, LLC.
The Plaintiff seeks to avoid and recover from Defendants all preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings of the Debtors.
The bankruptcy case and these adversary actions are before the Honorable Craig T. Goldblatt.
The bankruptcy case and these adversary actions are before the Honorable Craig T. Goldblatt.
Background, as alleged by Plaintiff:
Prior to the Petition Date, the Debtors were a leisure/discount car rental brand.
On May 26, 2020, Debtors commenced their voluntary cases under Chapter 11 of the Bankruptcy Code.
The Debtors’ Chapter 11 cases are jointly administered under Case No. 20-11269 (CTG).
On December 13, 2021, the Bankruptcy Court entered an order (i) confirming the Second Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Liquidation of Advantage Holdco, Inc. et al. and (ii) approving the Liquidating Trust Agreement and appointing the Plaintiff as Trustee to administer the Advantage Rent A Car Unsecured Creditor Trust Liquidating Trust.
The Plan became effective on January 31, 2022, on which date, all Liquidating Trust Assets, including the Liquidating Trust Causes of Action, which includes avoidance actions, were transferred to the Liquidating Trust pursuant to the Liquidating Trust Agreement.
On December 13, 2021, the Bankruptcy Court entered an order (i) confirming the Second Amended Combined Disclosure Statement and Joint Chapter 11 Plan of Liquidation of Advantage Holdco, Inc. et al. and (ii) approving the Liquidating Trust Agreement and appointing the Plaintiff as Trustee to administer the Advantage Rent A Car Unsecured Creditor Trust Liquidating Trust.
The Plan became effective on January 31, 2022, on which date, all Liquidating Trust Assets, including the Liquidating Trust Causes of Action, which includes avoidance actions, were transferred to the Liquidating Trust pursuant to the Liquidating Trust Agreement.
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
The following Adversary Proceedings were filed on May 25, 2022:
22-50357-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Verizon Communications Inc.
22-50358-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Listrak Inc.
22-50359-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. FedEx Corporate Services Inc.
22-50360-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. National Automobile Club
22-50361-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Fast Way Auto Service LLC
22-50362-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Sakaem Logistics, LLC
22-50363-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Colby Auto Investments, Inc.
22-50364-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. MVI Field Services, LLC
22-50365-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Netwolves Network Services LLC
22-50366-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Quality Oil Company
22-50367-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Rate-Highway Inc.
22-50368-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Securitas Security Services USA, Inc.
22-50369-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Southwest Airlines Co.
22-50370-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. United Rental Group LLC
22-50371-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. The Bank of NY Mellon Trust Co., N.A
And on August 31, 2022:
22-50357-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Verizon Communications Inc.
22-50358-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Listrak Inc.
22-50359-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. FedEx Corporate Services Inc.
22-50360-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. National Automobile Club
22-50361-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Fast Way Auto Service LLC
22-50362-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Sakaem Logistics, LLC
22-50363-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Colby Auto Investments, Inc.
22-50364-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. MVI Field Services, LLC
22-50365-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Netwolves Network Services LLC
22-50366-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Quality Oil Company
22-50367-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Rate-Highway Inc.
22-50368-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Securitas Security Services USA, Inc.
22-50369-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. Southwest Airlines Co.
22-50370-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. United Rental Group LLC
22-50371-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. The Bank of NY Mellon Trust Co., N.A
And on August 31, 2022:
22-50405-CTG CBIZ Accounting, Tax and Advisory of New York, LLC v. K.P. Isis LLC, et al.
If you conducted business with Advantage Rent A Car or any of the affiliated debtors, and especially if a complaint has been filed against you or your business, even if not served yet, contact us here, email us at info@tobialaw.com or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule an initial consultation. We can discuss the situation and share with you our initial observations at no charge.
