PennySaver USA Publishing, LLC - Preference Defense Lawyer

Beginning on May 23, 2017, Don A. Beskrone, the chapter 7 trustee for the estate of PennySaver USA Publishing, LLC filed 25 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the United States Bankruptcy Code.

Background, as alleged by Plaintiff:
    Founded in 1962, the Debtors were an iconic Southern California company that specialized in the production, printing, and dissemination of a free weekly publication, offering coupons and classified ads to targeted audiences.
    By 2013, the Debtors’ print circulation locally targeted 780 zones or regions and reached approximately 9.1 million California households every week. The Debtors’ website,, received 1 million unique visitors each month. The Debtors offered a full suite of products including print classified ads, online classified ads, flyers and inserts, local business listings, print display advertising, online display advertising, and PowerSites®, among others.
    By 2015, the Debtors encountered financial difficulties, which arose from a number of causes including, among other things: (i) a decline in print advertising market that corresponded with a rise in electronic media and changing consumer habits, and (ii) a related inability of the Debtors to pay their debts as they came due.

Procedural History:

The Debtors in these Chapter 7 cases are: PennySaver USA, LLC; PennySaver USA Printing, LLC; PennySaver USA Publishing, LLC; Orbiter Properties, LLC; and MonthlyMailer, LLC.

On May 29, 2015 (the “Petition Date”), each debtor (collectively, the “Debtors”)  filed in the United States Bankruptcy Court for the District of Delaware (the “Court”) a petition for relief under Chapter 7 of title 11 of the United States Code (the “Bankruptcy Code”). 

These adversary actions and the Chapter 7 proceedings are before the Honorable Christopher S. Sontchi.

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:

If you conducted business with PennySaver USA Publishing, LLC, and especially if you have received a demand letter or complaint, contact us here, email us at 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.
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