Diversified Mercury Communications, LLC - Preference and Fraudulent Transfer Defense Lawyer
These adversary actions are before the Honorable Karen B. Owens.
Prior to the bankruptcy filings, the Debtors were a full service direct response media agency with various businesses, including short form, long form, and digital advertising media
businesses, under the name "Mercury Media."
The Trustee seeks to avoid and recover from the individual defendants, or from any other person or entity for whose benefit the transfers were made, all preferential and/or fraudulent transfers of
property made by the Debtors to the individual defendants within the ninety-day preference period prior to the filing of the Debtor’s bankruptcy petitions pursuant to 11 U.S.C. §§ 547, 548 and 550.
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