BW Industries Inc. – Preference and Fraudulent Transfer Defense Lawyer

On May 1, 2025, Plaintiff Jeoffrey L. Burtch, as Chapter 7 Trustee for the Bankruptcy Estates of BW Industries Inc., and related debtors, began filing complaints seeking to avoid 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.

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

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 BW Industries Inc., 23-10844-MFW on May 1, 2025:

25-50717-MFW Burtch v. CLOUDFUND LLC et al
25-50720-MFW Burtch v. Yes Capital Group LLC
25-50722-MFW Burtch v. BMT Capital Group Inc.
25-50724-MFW Burtch v. Bridge Funding Cap LLC
25-50726-MFW Burtch v. Prime Advance LLC
25-50727-MFW Burtch v. Narai Ventures LLC
25-50728-MFW Burtch v. Ultra Funding, LLC
25-50729-MFW Burtch v. Velocity Capital Group LLC
25-50730-MFW Burtch v. Square Advance Corp.
25-50731-MFW Burtch v. Diesel Funding LLC
25-50732-MFW Burtch v. Wellen Capital, LLC