Furniture Brands International - Preference Defense Lawyer
Between August 19 and September 8, 2015, FBI Wind Down, Inc. Liquidating Trust (the “Trust”) by and through Alan D. Halperin, as Liquidating Trustee filed approximately 253 cases seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the United States Bankruptcy Code.
Previously, on September 9, 2013, Furniture Brands International filed its chapter 11 petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware. On August 1, 2014, the Debtors’ confirmed chapter 11 plan became effective, creating the Liquidating Trust.
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 Furniture Brands International, and especially if you have received a demand letter from the Trustee or complaint, contact us here, email us at email@example.com or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule a free initial consultation. We can discuss the circumstances and share with you our initial observations at no charge.