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The Class 10 Liquidation Trust Files Sixty Eight (68) Lawsuits in In re Shapes/Arch Holdings LLC

The Class 10 Liquidation Trust, the Litigation Trustee for Shapes/Arch Holdings LLC, recently filed a complaint against Northeast Metal Traders, Inc. on 3/11/2010 to recover an allegedly voidable preferential transfer of $ 1,767,249.23 under Chapter 11 Section 547 of the Bankruptcy Code. The Trustee has filed over 68 complaints so far, instituting preference actions against different vendors and other parties-in-interest in the bankruptcy cases of Shapes/Arch Holdings L.L.C. These also include five other high-value lawsuits for the recovery of over $ 12 million. These lawsuits were filed against Exco USA for $ 724,276.29, Matalco Inc. for $ 222,804.00, Crops NA Inc for $ 201,877.31, Melton Truck Lines, Inc. for $ 118,735.04 and Metal Koting for the return of about $ 104,200.59.

Shapes/Arch Holdings LLC had voluntarily filed for protection in the United States District Court for the Southern District of New Jersey on March 16, 2008. The Court confirmed the Chapter 11 plan of reorganization and the plan became effective on July 23, 2008. Pursuant to this, The Class 10 Liquidation Trust was established for the purpose of pursuing certain claims that were contributed to the Trust under the plan. The adversary complaint that was recently filed (and others that are continuing to be filed ) seeks to recover payments made in the 90 days prior to the March 16, 2008 bankruptcy filings on the account that such payments were either preferential transfers pursuant to section 547, fraudulent conveyances pursuant to section 548, and/or recoverable post-petition transactions (because they may have cleared after the bankruptcy filings) pursuant to section 549. These transfers were thus entitled to be recovered as preferences by the Debtors' estates unless a valid defense is proved.

Shapes/Arch Holdings, LLC, through its operating subsidiaries, is a manufacturer and distributor of a wide array of customized aluminum extrusions (see www.shapesllc.com), aluminum fence systems and swimming pools (see www.delairgroup.com), vinyl residential replacement windows and steel doors (see www.accu-weld.com) and value priced hardware products (see www.ultrahardware.com).

The U.S. case is In re Shapes/Arch Holdings LLC, 08-14631-GMB, Bankruptcy Court for District of New Jersey. Bankruptcy Judge Gloria M. Burns is presiding over this case. The plaintiff has retained Halperin Battaglia Raicht, LLP as their attorneys.