On October 29, 2020, Debtors Promise Healthcare Group, LLC and the related Debtors listed below began filing complaints seeking to avoid and recover alleged preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings pursuant to sections 547 and 550 of the Bankruptcy Code. Approximately 34 such complaints were filed between October 29 and October 30, 2020
The full list of Debtors in these chapter 11 cases are:
HLP Hea1thCare, Inc., PH-ELA, Inc., Professional Rehabilitation Hospital, L.L.C., Promise Healthcare #2, Inc., Promise Healthcare Group, LLC, Promise Healthcare Holdings, Inc., Bossier Land Acquisition Corp., HLP of Los Angeles, LLC; HLP of Shreveport, Inc., HLP Properties at The Villages Holdings, LLC, HLP Properties at the Villages, L.L.C. (1938), HLP Properties of Vidalia, LLC, HLP Properties, Inc., Promise Healthcare of California, Inc., Promise Healthcare, Inc., Promise Hospital of Ascension, Inc., Promise Hospital of Baton Rouge, Inc., Promise Hospital of Dade, Inc., Promise Hospital of Dallas, Inc., Promise Hospital of East Los Angeles, L.P., Promise Hospital of Florida at The Villages, Inc., Promise Hospital of Louisiana, lnc., Promise Hospital of Lee, lnc., Promise Hospital of Overland Park, Inc., Promise Hospital of Phoenix, Inc., Promise Hospital of Salt Lake, Ina , Promise Hospital of Vicksburg, Inc., Promise Hospital of Wichita Falls, Inc., Promise Properties of Dade, Inc., Promise Properties of Lee, lnc., Promise Properties of Shreveport, LLC, Promise Skilled Nursing Facility of Overland Park, Inc., Promise Skilled Nursing Facility of Wichita Falls, lnc., Quantum Health, Inc., Quantum Properties, L.P., St. Alexius Hospital Corporation #I, St. Alexius Properties, LLC, Success Healthcare 1, LLC, Success Healthcare 2, LLC, Success Healthcare, LLC, Vidalia Real Estate Partners, LLC, LH Acquisition, LLC, Promise Behavioral Health Hospital of Shreveport, Inc., Promise Rejuvenation Centers, lnc., Promise Rejuvenation Center at the Villages, Inc., and PHG Technology Development and Services Company, Inc.
On November 5, 2018, 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 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: http://www.tobialaw.com/delaware-preference-defense-lawyer.html
If you conducted business with Promise Healthcare Group, LLC
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 a free initial consultation. We can discuss the situation and share with you our initial observations at no charge.