Fleetwood Acquisition Corp. - Preference and Fraudulent Transfer Defense Lawyer
On June 15, 2020, the Debtors filed a Motion of the Debtors for an Order Converting These Cases from Chapter 11 to Chapter 7 of the Bankruptcy Code. The Court entered an Order converting these Cases on June 23, 2020.
"Prior to the Petition Date, the Debtors were providers of customized fixtures and displays that served a wide variety of customers in the retail and hospitality industries. The Debtors provided everything from initial design services through the manufacture and installation of fixtures for customers. In their businesses, the Debtors worked with numerous vendors to provide their goods and services."
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