M & G USA Corporation - Preference Defense Lawyer
Beginning on October 18, 2019, Alan D. Halperin and Ankura Trust Company, as co-trustees of the M & G Corporation Litigation Trust began filing complaints seeking to avoid and recover alleged preferential and/or fraudulent transfers and and unauthorized transfers that cleared post-petition, made by M & G USA Corporation and/or its affiliated debtors and debtors in possession, pursuant to Sections 547, 548, 549, and/or 550 of the United States Bankruptcy Code. Approximately 113 complaints have been filed so far.
The Debtors were the following nine entities: M & G USA Corporation, M & G Resins USA, LLC , M & G Polymers USA, LLC, M & G Finance Corporation, M&G Waters USA, LLC, M & G USA Holding, LLC, Chemtex International Inc., Chemtex Far East, Ltd. and Indo American Investments, Inc.
On October 24, 2017 (the "Polymers Petition Date"), Debtor M&G Polymers USA, LLC filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code and, thereafter, on October 30, 2017 (together with the Polymers Petition Date, the "Petition Dates"), each of the other Debtors commenced chapter 11 cases.
On December 17, 2018, this Court entered an order confirming the Third Amended Joint Plan of Liquidation of the Debtors and Debtors in Possession in the Chapter 11 Cases. The Plan became effective on December 31, 2018.
Pursuant to the Plan, the Litigation Trust is empowered to, among other things, pursue the Litigation Trust Causes of Action (as defined in the Plan) transferred to the Litigation Trust.
These adversary actions are before the Honorable Brendan L. Shannon.
Background, as alleged by Plaintiff:
Prior to the Petition Date, Debtors maintained business relationships with variousCommon Defenses in Preference Actions
business entities, through which the Debtors regularly purchased, sold, received, and/or delivered 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 pages on Preference Defense Litigation: http://www.tobialaw.com/delaware-preference-defense-lawyer.html and Fraudulent Transfer Defense Litigation: https://www.tobialaw.com/defense-of-fraudulent-transfer-actions.html
If you conducted business with M & G USA Corporation or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed against you or your business even if not served yet, contact us here, email us at email@example.com or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule an initial consultation. We can discuss the situation and share with you our initial observations at no charge.