OPP Liquidating Company, Inc. (f/k/a Orchids Paper Products Company) - Preference Defense Lawyer
The Liquidating Trustee seeks to avoid and recover from the Defendant, or from any other person or entity for whose benefit the transfers were made, all preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings of Debtor OPP Liquidating Company, Inc. (f/k/a Orchids Paper Products Company) and its affiliated Debtors. Approximately 29 such complaints were filed between December 3 and December 8, 2020.
Debtors were a national supplier of high quality consumer tissue products. The Debtors were strategically aligned with retail’s higher growth private label market, which large retail customers utilize to position competitively their brand against the dominant consumer brands. The Debtors provided a full range of tissue types (bath, towels, napkins and parent rolls) across the value spectrum (ultra-premium through conventional/value) with a wide range of packaging.
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 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