OPP Liquidating Company, Inc. (f/k/a Orchids Paper Products Company) - Preference Defense Lawyer
On December 3, 2020, Buchwald Capital Advisors LLC, in its capacity as Liquidating Trustee of the Orchids Paper Products Liquidating Trust, began filing complaints seeking to avoid and recover certain alleged preferential and/or fraudulent transfers and and unauthorized transfers that cleared post-petition, pursuant to Sections 547, 548, and/or 550 of the United States Bankruptcy Code.
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.
The full list of Debtors in these chapter 11 cases are OPP Liquidating Company, Inc., (f/k/a Orchids Paper Products Company), OPP Liquidating Company of South Carolina, Inc. (f/k/a Orchids Paper Products Company of South Carolina), and OLSC Liquidating Company, LLC, (f/k/a Orchids Lessor SC, LLC).
On April 1, 2019, each of the Debtors commenced voluntary cases under Chapter 11 of the Bankruptcy Code. These cases are Jointly Administered.
These adversary actions are before the Honorable Mary F. Walrath.
Background, as alleged by Plaintiff:
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
If you conducted business with Orchids Paper Products Company or any of the related 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, email us at firstname.lastname@example.org 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.