Bostwick Laboratories, Inc. - Preference Defense Lawyer
On March 15, 2017 (the "Petition Date"), Debtors Bostwick Laboratories, Inc. and Bostwick Laboratories Holdings, Inc. each commenced a Bankruptcy case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
On July 11, 2017, the Debtors filed their Combined Plan and Disclosure Statement for Bostwick Laboratories, Inc. and Bostwick Laboratories Holdings, Inc. (the "Plan"). On September 15, 2017, the Court entered the Findings of Facts, Conclusions of Law, and Order Confirming Debtors’ Combined Plan and Disclosure Statement for Bostwick Laboratories, Inc. and Bostwick Laboratories Holdings, Inc. [Docket No. 547] (the “Confirmation Order”), thereby approving the Plan.
These adversary actions are before the Honorable Brendan L. Shannon.
Background, as alleged by Plaintiff:
The Debtors were an independent, full-service anatomic pathology laboratory and specialty provider of diagnostic testing services for urologists and gynecologists in the United States. The Debtors also served as a reference laboratory offering a suite of anatomic pathology and molecular testing services to independent physicians nationally.Common Defenses in Preference Actions
The Debtors derived much of their revenue from key commercial and government contracts, where its services were considered “in network” under national commercial health insurance plans, Medicare and over twenty-five (25) state Medicaid programs.
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 Bostwick Laboratories, Inc. or Bostwick Laboratories Holdings, Inc. 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 firstname.lastname@example.org or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule a free initial consultation. We can discuss the situation and share with you our initial observations at no charge.