Powermate Holding Corporation Sues Nine (9) Creditors

Power equipment manufacturer, Powermate Holding Corp. (“Powermate”), recently initiated adversary proceedings against 9 creditors earlier last week to recover allegedly voidable preferential transfers under Chapter 11 Section 547 of the Bankruptcy Code. Powermate has sued Phoenix International Freight for the amount of $ 401,907.85; Kohler Inc. for $ 303,600; and Imperial Plastics, Inc. for $ 155,242.27. Some of the other creditors against whom lawsuits were initiated include Jiaxing Jackson Travel Products Co., Ltd., Leviton Manufacturing Co., Dura-Tech, Inc., Microcast Technologies, Inc., Universal Forest Products, and Parker Hannifin Corporation.

On March 17, 2008, Powermate filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

The U.S. case is In re Powermate Holding Corp.; Bankruptcy Judge Kevin Gross is presiding over this case. The plaintiff has retained Young, Conaway, Stargatt & Taylor as their attorneys.