Beginning on October 6, 2023,
Alfred T. Giuliano, solely in his capacity as the chapter 7 trustee for the jointly administered bankruptcy estates of Vista Professional Development, LLC and its affiliated debtors began filing complaints, thus opening adversary proceedings, seeking: (1) to avoid certain alleged transfers as preferential under Section 547 and/or fraudulent under Section 548 of the Bankruptcy Code, and recover under Section 550 and (2) to disallow the claim(s) held by individual defendants under Section 502. Approximately 12 such complaints have benn filed so far.
The Debtors in these cases are: Vista Professional Development, LLC; Vista Professional International, LLC; New Day Vista, LLC; Computer Career Center, L.P.; EFG General Partner Corp.; EFG Limited Partner Corp.; Certified Careers Institute, LLC; Education Futures Management Co.; and Education Futures Group, LLC.
The bankruptcy cases and these adversary actions are before the Honorable John T. Dorsey.
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
The following Adversary Proceedings were filed in the bankruptcy of Vista Professional Development, LLC, Case No. 21-11318-JTD on October 6, 2023 (unless a different date is specified below).
Vista Professional Development, LLC 10/6
23-50734-JTD Giuliano v. Anthology, Inc.
23-50735-JTD Giuliano v. Health Care Service Corporation
23-50736-JTD Giuliano v. Interra-Sky Lake Charles, LLC
23-50737-JTD Giuliano v. Killeen ATM, LLC
23-50738-JTD Giuliano v. Lombard Group Texas, LLC
23-50739-JTD Giuliano v. MNI Targeted Media, Inc.
23-50740-JTD Giuliano v. National Healthcareer Association, Inc.
23-50741-JTD Giuliano v. Pipit Partners LP
23-50742-JTD Giuliano v. Pro-Action, Inc.
23-50743-JTD Giuliano v. Quill LLC
23-50744-JTD Giuliano v. Ready Education LLC
23-50745-JTD Giuliano v. Time Warner Cable