Wilmington Creditor's Rights Lawyer James Tobia HomeTaylor Gourmet MGMT LLC - Preference Defense Lawyer
Beginning on August 21, 2020, Jeoffrey L. Burtch, as the chapter 7 trustee of Debtors
Samuels Jewelers, Inc. began filing complaints seeking to avoid and recover certain alleged preferential transfers and unauthorized transfers that cleared post-petition, pursuant to Sections 547, and 550 of the United States Bankruptcy Code. Approximately 15 such complaints have been filed so far.
The Chapter 7 Trustee seeks to avoid and recover from Defendants, 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 the Debtors.
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 the Debtors.
The Debtors are: Taylor Gourmet LLC; Case No. 18-12143 (CSS); East Coast Mgmt LLC; Case No. 18-12144 (CSS); Taylor Gourmet 1 N Dearborn LLC; Case No. 18-12145 (CSS); Taylor Gourmet 1001 Penn Ave LLC; Case No. 18-12146 (CSS); Taylor Gourmet 1116 H LLC; Case No. 18-12147 (CSS); Taylor Gourmet 1150 Connecticut LLC; Case No. 18-12148 (CSS); Taylor Gourmet 1200 19th LLC; Case No. 18-12149 (CSS); Taylor Gourmet 1401 K LLC; Case No. 18-12150 (CSS); Taylor Gourmet 1750 Pennsylvania LLC; Case No. 18-12151 (CSS); Taylor Gourmet 1910 14th LLC; Case No. 18-12152 (CSS); Taylor Gourmet 2200 Crystal LLC; Case No. 18-12153 (CSS); Taylor Gourmet 4000 Wilson LLC; Case No. 18-12154 (CSS); Taylor Gourmet 485 K LLC; Case No. 18-12155 (CSS); Taylor Gourmet 624 E LLC; Case No. 18-12156 (CSS); Taylor Gourmet 7280 Woodmont LLC; Case No. 18-12157 (CSS); Taylor Gourmet 8535 Fenton LLC; Case No. 18-12158 (CSS); Taylor Gourmet 888 17th LLC; Case No. 18-12159 (CSS); Taylor Gourmet Ballpark LLC; Case No. 18-12160 (CSS); Taylor Gourmet Boro LLC; Case No. 18-12161 (CSS); Taylor Gourmet Merrifeld LLC; Case No. 18-12162 (CSS); 1418 14th LLC; Case No. 18-12163 (CSS); Taylor Gourmet Mgmt LLC; Case No. 18-12164 (CSS); Taylor Gourmet N Morgan Street LLC; Case No. 18-12165 (CSS); Taylor Gourmet Pike & Rose LLC; Case No. 18-12166 (CSS); Taylor Gourmet Wharf LLC; Case No. 18-12167 (CSS); Taylor Gourmet Willis Tower LLC; Case No. 18-12168 (CSS).
Procedural History:
On August 7, 2018 (the "Petition Date"), the Debtors commenced voluntary cases under Chapter 7 of the Bankruptcy Code.
Background, as alleged by Plaintiff:
Debtors were launched in 2008 and operated hoagie chains throughout the Washington, D.C., Maryland and Virginia area. The Debtors had recently opened two locations in Chicago.
These cases are Substantively Consolidated, by Order dated January 2, 2020.
These adversary actions are before the Honorable Christopher S. Sontchi.
Background, as alleged by Plaintiff:
Debtors were launched in 2008 and operated hoagie chains throughout the Washington, D.C., Maryland and Virginia area. The Debtors had recently opened two locations in Chicago.
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 Samuels Jewelers, Inc.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 info@tobialaw.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.
