Arena Football League LLC - Preference and Fraudulent Transfer Defense Lawyer
On February 20, 2020 (the “AF One Petition Date”), Arena Football One, L.L.C., the AF One Debtor commenced its chapter 7 case in the United States Bankruptcy Court for the District of Delaware. That same day, Don A. Beskrone was appointed interim chapter 7 Trustee of the AF One Debtor’s bankruptcy estate. On April 8, 2020, a meeting of creditors under and pursuant to 11 U.S.C. § 341(a) was held and concluded. No election took place and Don A. Beskrone serves as the Chapter 7 Trustee of the AF One Debtor and its estate pursuant to 11 U.S.C. § 702(d).
By order of the Court entered March 31, 2020, the cases of the AFL Debtor and the AF One Debtor are jointly administered.
"Prior to their respective Petition Dates, each of the Debtors at some point in time owned and operated the Arena Football League, ... a professional indoor tackle football league."
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