DirectStream, LLC - Preference and Fraudulent Transfer Defense Lawyer

On March 3, 2022, Plaintiff Don A. Beskrone, as Chapter 7 Trustee for DirectStream, LLC, initiated nine adversary proceedings by filing individual complaints, pursuant to sections 547, 548, and/or 550 of the Bankruptcy Code, seeking to avoid and recover certain transfers made to the individual defendant(s) within 90 days prior to the commencement of the Debtors' Bankruptcy cases, and to disallow any claims held by the individual defendants.  

Background, as alleged by Plaintiff:

    Prior to the Debtor's bankruptcy filing, "[T]he Trustee understands the Debtor owned and operated a business that designed secure FPGA (field-programmable gate array) computation and networking, and provided general purpose reconfigurable computing and programmer friendly servers, workstations and embedded systems."


Procedural History:

On March 5, 2020, the Debtor filed a voluntary petition under Chapter 7 of the Bankruptcy Code.
 
After the Petition Date, the United States Trustee for the District of Delaware appointed Don A. Beskrone to serve as the interim Chapter 7 Trustee in this Case.  On April 2, 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 Debtor and the Debtor’s estate pursuant to 11 U.S.C. § 702(d).

These adversary actions are before the Honorable 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/delaware-preference-defense-lawyer.html

If you conducted business with DirectStream, LLC and especially if you have received a a demand letter or a complaint has been filed against you or your business, even if not served yet, email us at info@tobialaw.com 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.


List of Adversary Proceedings filed in DirectStream, LLC bankruptcy, Case No. 20-10534-MFW on March 3, 2022:

22-50210-MFW    Beskrone, Chapter 7 Trustee for DirectStream
, LLC v. Chris Evans Firm LLC
22-50211-MFW    Beskrone, Chapter 7 Trustee for DirectStream
, LLC v. Martin Hild, P.A.
22-50212-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. Shore Chan Depumpo LLP
22-50214-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. American Express
22-50218-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. Caliga
22-50220-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. Delta Dental of Colorado
22-50223-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. GPIF CO SPRINGS 1 LLC
22-50226-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. Planning Gateway LLC
22-50228-MFW    Beskrone, Chapter 7 Trustee for DirectStream, LLC v. United Healthcare - All Savers


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