New Delaware Bankruptcy Court Preference Decisions
by Deborah L. Thorne, Barnes & Thornburg LLP
Two recent decisions in the United States Bankruptcy Court for the District of Delaware provide insight into both the ordinary course and new value defenses to unsecured creditors faced with preference liability.
Committee Meeting at 2005 Annual Spring Meeting
Please join us at the Unsecured Trade Creditors Committee meeting on Saturday, April 30 at 9:30 a.m. The committee will present a panel discussion concerning recent successful challenges to debtor insolvency in the course of preference litigation. Paul Sinclair and Kevin Huennekens of Kutak Rock and Guy Davis of Navigant Consulting will discuss their recent experiences in challenging the claim that the debtor was insolvent in preference litigation in the Heilig Meyers and Payless Cashways cases.
In addition to the panel discussion, the committee will discuss future meetings, programs and the need to update both the Manual on Trade Creditors’ Rights of Reclamation & Stoppage of Delivery of Goods (written by Bruce Nathan of Lowenstein Sandler and published in 2002) and the Preference Handbook (written by David Wheeler of Moore & Van Allen PLLC). Both will require revision in light of the impending new legislation and case developments. Committee members looking for a good way to get involved in the work of the committee may want to consider volunteering for this project. Members will also plan the programs for the 2005 Winter Leadership Conference and discuss other ways the committee can effectively work for the common good of unsecured creditors.