GFX Holdings, LLC - Preference and Fraudulent Transfer Defense Lawyer
"Prior to the Debtor's bankruptcy filing, the Debtor owned and operated a business that provided metal fabrication services. The Debtor offered drums, reactors, pressure vessels, skid-mounted process systems and equipment, thermal oxidizers, project management, engineering, and designing services."
On or around the same date, Don A. Beskrone, was appointed Chapter 7 Trustee of the Debtor’s estate. A meeting of creditors pursuant to 11 U.S.C. § 341 was held and concluded on May 12, 2020. Accordingly, the Trustee serves as the trustee in this case pursuant to 11 U.S.C. § 702(d). The Trustee has not filed a motion to operate the businesses of the Debtor pursuant to 11 U.S.C. § 721, and the Debtor currently has no business operations.
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