Vesttoo Ltd. – Preference and Fraudulent Transfer Defense Lawyer

Beginning on August 13, 2025, the Vesttoo Creditors Liquidating Trust began filing complaints seeking to avoid and recover payments made during the 90 day period prior to the bankruptcy filing, as preferential under Section 547 and/or fraudulent under Section 548 of the Bankruptcy Code. Approximately 16 such complaints have been filed so far.

The bankruptcy cases and these adversary actions are before Judge Mary F. Walrath.

A full list of the Debtors (collectively the “Debtors”) in these Chapter 11 Cases is available at Annex A of the
Chapter 11 Voluntary Petition of Vesttoo Ltd., filed at D.I. 1 in Case No. 23-11160.

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/practice-areas/delaware-preference-defense-lawyer/

The following Adversary Proceedings were filed in the bankruptcy of Vesttoo Ltd., Case No. 23-11160-MFW on August 13, 2025:

25-51995-MFW Vesttoo Creditors Liquidating Trust v. Appleby (Bermuda) Ltd.
25-51996-MFW Vesttoo Creditors Liquidating Trust v. Bristows LLP
25-51997-MFW Vesttoo Creditors Liquidating Trust v. Expertise Limited
25-51998-MFW Vesttoo Creditors Liquidating Trust v. GK Advisory
25-51999-MFW Vesttoo Creditors Liquidating Trust v. Levinstein Properties Ltd.
25-52000-MFW Vesttoo Creditors Liquidating Trust v. Meitar Law Offices
25-52001-MFW Vesttoo Creditors Liquidating Trust v. Moody’s Analytics Inc.
25-52002-MFW Vesttoo Creditors Liquidating Trust v. Payem Card Ltd.
25-52004-MFW Vesttoo Creditors Liquidating Trust v. Sphere Consulting Services Ltd.
25-52005-MFW Vesttoo Creditors Liquidating Trust v. Talma Shlomo Travel Solutions Ltd.
25-52006-MFW Vesttoo Creditors Liquidating Trust v. The Value Engineers Ltd.
25-52007-MFW Vesttoo Creditors Liquidating Trust v. Amazon Web Services EMEA SARL (AWS Europe)
25-52008-MFW Vesttoo Creditors Liquidating Trust v. Clifford Chance LLP
25-52009-MFW Vesttoo Creditors Liquidating Trust v. Kroll Associates UK Ltd.
25-52010-MFW Vesttoo Creditors Liquidating Trust v. Mayer Brown International LLP
25-52016-MFW Vesttoo Creditors Liquidating Trust v. M.D.N.I. HOLDINGS LTD