In a decision signed September 8, 2017 in an adversary proceeding related to the Money Center of America bankruptcy (case 14-10603), Judge Sontchi of the Delaware Bankruptcy Court denied a defendants FRCP 12(b)(6) motion to dismiss a complaint filed in
Delaware Bankruptcy Update
Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States
Latest from Delaware Bankruptcy Update - Page 4
Wet Seal – Preference Actions Filed
On August 29, 2017, The Wet Seal, LLC filed preference actions against 67 defendants. The lead Wet Seal bankruptcy case is Case No. 17-10229 in the Bankruptcy Court for the District of Delaware. Wet Seal is represented by A.M. Saccullo Legal,…
Model Reorg Acquisition, LLC Files for Bankruptcy in Delaware
On August 26, 2017, Model Reorg Acquisition, LLC, and eighteen of its subsidiaries and affiliates (collectively, “Model Reorg” or “Debtors”), filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District…
A Free House – But No Additional Damages
On August 23, 2017, Judge Shannon of the Delaware Bankruptcy Court issued an order that is a reminder that this is a court of equity – and that at the end of the day, he will act equitably. A…
Delaware Bankruptcy Court Dismisses Claims against Echo/RT Holdings in Raytrans Bankruptcy Case
In the recent decision of Klauder v. Echo/RT Holdings LLC (In re Raytrans Holding, Inc.), Adv. No. 15-50273 (CSS) (Del. Bankr. Aug. 10, 2017), Judge Sontchi granted Defendants’ Motion to Dismiss the Trustee’s Second Amended Complaint, dismissing the Trustee’s claims…
Preferences Actions Filed in Univita Holdings LLC Bankruptcy Case
On July 19-21, 2017, David W. Carickhoff, in his capacity as Chapter 7 Trustee of the Estates of Univita Holdings, et al., filed approximately 46 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547…
Success Fees – Technical Arguments Fail in the Face of Broad Definitions
In a decision signed July 26, 2017 in the Nephrogenex bankruptcy (case 16-11074), Judge Gross of the Delaware Bankruptcy Court approved of the application of the Debtor’s investment banker for a success fee over the objection of, among others, the Debtor…
Derivative Complaints by Creditors Against Chapter 7 Trustees – They Don’t Tend to Go Very Far
In a decision signed July 17, 2017 in the Our Alchemy, LLC bankruptcy (case 16-11596), Judge Gross of the Delaware Bankruptcy Court granted a trustee’s partial motion to dismiss a complaint, holding that a creditor cannot assert general claims against…
F-Squared Investment Management – Avoidance Actions Filed
On July 6-7, 2017, Craig Jalbert, in his capacity as Trustee for F2 Liquidating Trust, filed approximately 187 complaints seeking the avoidance and recovery of allegedly preferential and/or fraudulent transfers under Sections 547, 548 and 550 of the Bankruptcy Code…
GFES Liquidation Trust – Motion to Abate – Denied
We have previously posted about a couple major milestones for Green Field Energy – here Green Field Energy Files for Bankruptcy Protection in Delaware and here: Green Field Energy Services – Preference Actions Filed. In this Opinion, published June…