Delaware Creditor's Rights Lawyer James Tobia HomeWB Supply LLC - Delaware Preference Defense Lawyer
Beginning on July 20, 2022, Howley Law PLLC, in its capacity as Creditor Trustee of the WB Supply LLC Liquidation Trust began filing complaints seeking to: (1) avoid and recover from the individual defendants alleged preferential transfers of property that occurred during the 90 day period prior to Debtor's initial bankruptcy filing and (2) to disallow any claims held or filed by the individual defendants, pursuant to Sections 547, 550 and 502 of the United States Bankruptcy Code.
The bankruptcy case and these adversary actions are before the Honorable Brendan L. Shannon.
Procedural Background
On April 20, 2021 Debtor WB Supply, LLC filed a voluntary petition for relief pursuant to Chapter 11 of the Code.
Debtor operated as a debtor-in-possession pursuant to §§ 1107 and 1108 of the Code.
As alleged in the Complaint, "Debtor was a privately held pipe and supply company that catered principally to the oil and gas industry supplying both products and technical services to the industry. The Debtor served its customers through a network of strategically located stores, pump shops, pipe yards, mobile supply stores, and sales offices."
The bankruptcy case and these adversary actions are before the Honorable Brendan L. Shannon.
Procedural Background
On April 20, 2021 Debtor WB Supply, LLC filed a voluntary petition for relief pursuant to Chapter 11 of the Code.
Debtor operated as a debtor-in-possession pursuant to §§ 1107 and 1108 of the Code.
As alleged in the Complaint, "Debtor was a privately held pipe and supply company that catered principally to the oil and gas industry supplying both products and technical services to the industry. The Debtor served its customers through a network of strategically located stores, pump shops, pipe yards, mobile supply stores, and sales offices."
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
The following Adversary Proceedings were filed, On July 20, 2022:
22-50395-BLS Howley Law PLLC v. Mako Products Inc.
22-50396-BLS Howley Law PLLC v. McCarty Equipment Co., Ltd.
22-50397-BLS Howley Law PLLC v. Odessa Pumps & Equipment, Inc.
And on September 6, 2022:
22-50407-BLS Howley Law PLLC v. Allied Fitting, L.P.
22-50408-BLS Howley Law PLLC v. Makena Sales Co., Inc.
22-50409-BLS Howley Law PLLC v. Mayco, Inc.
22-50410-BLS Howley Law PLLC v. MPI Warehouse Specialty Inc.
22-50411-BLS Howley Law PLLC v. Rainmaker Sales Inc.
If you conducted business with WB Supply LLC, and especially if a complaint has been filed against you or your business, even if not served yet, contact us here, 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.
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
22-50395-BLS Howley Law PLLC v. Mako Products Inc.
22-50396-BLS Howley Law PLLC v. McCarty Equipment Co., Ltd.
22-50397-BLS Howley Law PLLC v. Odessa Pumps & Equipment, Inc.
And on September 6, 2022:
22-50407-BLS Howley Law PLLC v. Allied Fitting, L.P.
22-50408-BLS Howley Law PLLC v. Makena Sales Co., Inc.
22-50409-BLS Howley Law PLLC v. Mayco, Inc.
22-50410-BLS Howley Law PLLC v. MPI Warehouse Specialty Inc.
22-50411-BLS Howley Law PLLC v. Rainmaker Sales Inc.
If you conducted business with WB Supply LLC, and especially if a complaint has been filed against you or your business, even if not served yet, contact us here, 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.
