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Dan River Holdings, LLC Files Over Twenty (20) New Lawsuits

Jeoffrey L. Burtch, the trustee for Dan River Holdings LLC (“Dan River”), filed another twenty (20) lawsuits against its creditors earlier this month to recover allegedly voidable preferential transfers under Chapter 11 Section 547 of the Bankruptcy Code. These included many high-value complaints. The largest case in the group - Bismillah Textiles Pvt Ltd was sued for recovery of $2,865,621.93. Earlier this year, Dan River had initiated adversary actions against 80 creditors. The textile maker, had filed for the voluntarily petition under Chapter 7 of the Bankruptcy Code in April 2008 before the United States Bankruptcy for the District of Delaware. This was Dan River’s second request for court protection in the last six years. The textile maker had also previously sought court protection in March 2004 in the Atlanta federal court, listing $ 441.8 million in assets and $ 371.8 million in debt. The company exited its first bankruptcy in February 2005 after shedding more than $ 200 million in debt.

The U.S. case is In re Dan River Holdings, LLC. Bankruptcy Judge Brendan Linehan Shannon is presiding over this case. The plaintiff has retained Cooch & Taylor, P.A as their attorneys.