Delaware Creditor's Rights Lawyer James Tobia HomeAEI Winddown, Inc. - Preference Defense Lawyer
On March 7, 2019, Aquion Liquidating Trust, by and through its Liquidating Trustee, Suzanne B. Roski ("Plaintiff"), began filing complaints seeking to avoid and recover alleged preferential and/or fraudulent transfers pursuant to Sections 547, 548, and 550 of the United States Bankruptcy Code. Plaintiff seeks to avoid and recover from Defendant, or from any other person or entity for whose benefit the transfers were made, all preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings of AEI Winddown, Inc. (f/k/a Aquion Energy, Inc.). Approximately 20 such complaints have been filed to date.
Procedural History:
On March 8 , 2017 (the "Petition Date"), Debtor AEI Winddown, Inc. (f/k/a Aquion Energy, Inc. commenced a Bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
On December 19, 2017, the Bankruptcy Court entered the Order Granting Final Approval of the Disclosure Statement and Confirming Debtor 's Plan of Liquidation Pursuant to Chapter 11 of the Bankruptcy Code (the "Confirmation Order") confirming the Debtor's Plan of Liquidation Pursuant to Chapter 11 of the Bankruptcy Code (the "Plan") attached as Exhibit A to the Confirmation Order.
The Aquion Liquidating Trust (the "Liquidating Trust") was established pursuant to the Plan and Confirmation Order, and The Liquidating Trustee is authorized, on behalf of the Liquidating Trust, to litigate all Causes of Action of the Liquidating Trust as defined in the Plan.
These adversary actions are before the Honorable Kevin J. Carey.
Background, as alleged by Plaintiff:
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:
If you conducted business with Delivery Agent, Inc. or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed even if not yet served against you or your business, 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.
Procedural History:
On March 8 , 2017 (the "Petition Date"), Debtor AEI Winddown, Inc. (f/k/a Aquion Energy, Inc. commenced a Bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
On December 19, 2017, the Bankruptcy Court entered the Order Granting Final Approval of the Disclosure Statement and Confirming Debtor 's Plan of Liquidation Pursuant to Chapter 11 of the Bankruptcy Code (the "Confirmation Order") confirming the Debtor's Plan of Liquidation Pursuant to Chapter 11 of the Bankruptcy Code (the "Plan") attached as Exhibit A to the Confirmation Order.
The Aquion Liquidating Trust (the "Liquidating Trust") was established pursuant to the Plan and Confirmation Order, and The Liquidating Trustee is authorized, on behalf of the Liquidating Trust, to litigate all Causes of Action of the Liquidating Trust as defined in the Plan.
These adversary actions are before the Honorable Kevin J. Carey.
Background, as alleged by Plaintiff:
Prior to the commencement of the Chapter 11 Case and the sale of substantially all of its assets, the Debtor manufactured saltwater batteries with a proprietary, environmentally-friendly electrochemical design. The Debtor was founded in 2008, was based in Pittsburgh, and had its first commercial product launch in 2014. The Debtor's products included battery stacks, modules, and monitoring systems. More than 55 global dealers and distributors sold the Debtor's products directly to end users and other customers that incorporated the batteries into third-party systems and equipment such as inverters, controls, solar/wind generators, gensets, racking, and enclosures.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 Delivery Agent, Inc. or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed even if not yet served against you or your business, 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.
