July 5, 2011 - In McKittrick v. Brown (In re Knowling), 2011 Bankr. LEXIS 2581 (Bankr. D. Or. July 5, 2011), the court dealt with the issue whether the transfer of a security interest in debtor Joel Robert Knowling’s business assets to the creditors Michael Brown, Ron Stevens, Vision Plastics, Inc., Terry Glenn and Lyn Glenn (the “creditors”) during the preference period was avoidable as preference. The creditors had extended a loan of $225,000 to Knowling and Knowling had delivered a Promissory Note to the creditors listing his business assets as repayment of the loan. Knowling’s trustee Peter C. McKittrick contended that the security interest satisfied all the elements of a preferential transfer and could thus be avoided as preference. The creditors however argued that although the elements of a preferential transfer were satisfied, the security interest in Knowling’s business assets was a contemporaneous exchange for the creditors’ release of a security interest in a valuable boathouse and thus the transfer could not be avoided. The court observed that the grant of the security interest in Knowling’s business assets was avoidable as preference since the release of the lien on the boathouse did not constitute new value. Knowling did not have clear title to the boathouse when he granted the security interest to the creditors, and the lien against the boathouse thus had no value. Also, the security interest in the boathouse was only released by the creditors when they discovered the title discrepancy. Therefore, the court held that the transfer was not protected under the contemporaneous exchange for new value defense and was avoidable.
Velocity Express, Inc. which was earlier known as MCTS2 filed for chapter 11 bankruptcy relief on September 14, 2009. The Plaintiff filed 105 adversary actions between September 21, 2011 and September 23, 2011 in the Bankruptcy Court for the District of Delaware. Bankruptcy Judge Mary F. Walrath is presiding over the cases. The Plaintiff has retained the legal services of Sullivan Hazeltine Allinson LLC. MCG Global has been sued for an amount $890,719.55 making it the largest action in the group.
National Pool Construction Inc. was founded in 1955 and is based in Robbinsville, New Jersey. The company is engaged in the business of building pools and spas. It constructs in ground and above ground pools and Sundance spas, as well as o accessories. On September 16, 2009, National Pool Construction Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey. Scott C. Pyfer, the Liquidating Trustee of the company filed 42 adversary complaints on September 16, 2011 in the U.S. Bankruptcy Court for the District of New Jersey with Bankruptcy Judge Kathryn C. Ferguson presiding over the cases. The trustee has retained the legal services of Ashford – Schael LLC.
Thelen LLP, anAamerican law firm was founded in 1924 as Thelen, Marrin, Johnson & Bridges in San Francisco, California. The firm counseled contractors and developers in a wide range of big ticket infrastructure projects, including the Hoover Dam, the Golden Gate Bridge, the San Francisco-Oakland Bridge and the second stage of Grand Coulee Dam. In June 1998, Thelen Marrin merged with New York-based firm Reid & Priest after which the firm’s name was changed to Thelen Reid Brown Raysman & Steiner. The firm filed for chapter 7 bankruptcy on September 18, 2009. Yann Geron, the Chapter 7 Trustee of the Estate of Thelen LLP filed 78 adversary proceeding complaints between September 15, 2011 and September 16, 2011 in the Southern District of New York against former Thelen partners and their new law firms and former Thelen clients. Bankruptcy Judge Allan L. Gropper is presiding over the cases. The trustee has retained the legal services of Fox Rothschild LLP. The largest action filed in the group is against San Francisco Assisted Living for an amount $614,597.
Island One and its affiliates have developed and managed time-share resorts in Florida and the U.S. Virgin Islands since 1981. On September 10, 2011, Island One and its five affiliates filed for chapter 11 bankruptcy relief in the Bankruptcy Court for the Middle District of Florida. Trustee Larry S. Hymen filed nearly 63 adversary actions between July 29, 2011 and August 1, 2011the U.S. Bankruptcy Court for the Middle District of Florida. Bankruptcy Judge Karen S. Jennemann is presiding over the cases. Trustee has retained the legal services of Bush Ross P.A. Booking.com BV has been sued for an amount of $128,000 making it the largest action in the group.
Florida Trucking Co., Inc. was incorporated in 1997 and operates as a trucking company in Tampa, Florida. The company provides dump trucks to construction companies. Kearny Construction Co., LLC was founded in 1956 and is one of the oldest and largest site developers in the Tampa Bay area. On June 4, 2009, Florida Trucking and Kearny Construction filed for bankruptcy relief under Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa. Trustee Larry S. Hymen initiated nearly 99 adversary actions from August 24, 2011 to August 26, 2011 in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa. Bankruptcy Judge Calyl E. Delano is presiding over the cases. The Trustee has retained Glenn Rasmussen Fogarty & Hooker, PA as the Counsel. The largest action in the group is initiated against Ferguson Enterprises, Inc. for an amount of $555,000. Ferguson is engaged in the distribution of pipes, valves and fittings, waterworks, heating and cooling equipment in North America
PNG Ventures, Inc., with its corporate headquarters in Dallas, Texas, was incorporated in the year 1995 and is engaged in the production, distribution and sale of liquefied natural gas (“LNG”) to customers consisting of public utilities, industrial end-users and other fleet customers within the transportation, manufacturing, distribution and municipal markets, primarily in California, Arizona and Nevada. The company also offers turnkey fuel solutions, including delivery, equipment storage, fuel dispensing equipment and fuel loading facilities. On September 9, 2009, PNG filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. In September 2011, Trustee Edward P. Bond filed nearly 33 cases in the Bankruptcy Court for the District of Delaware. The Trustee has retained the legal services of Drinker Biddle & Reath LLP. Bankruptcy Judge Christopher S. Sontchi is presiding over these cases. The largest action in the group is filed against MG Advisors LLC for an amount of $91,611.30.
Taylor, Bean & Whitaker Mortgage Corporation operates as a wholesale mortgage lender in the United States. The company is headquartered in Ocala, Florida. It offers home and life insurance products and home loans. TBW was founded in 1982 and since then, the company has established itself as a national mortgage lending institution with offices across the country. On August 24, 2009, the company filed for voluntary Chapter 11 bankruptcy protection in the Bankruptcy Court for the Middle District of Florida. Trustee Neil F. Luria filed nearly 258 cases in the month of August 2011 in the Bankruptcy Court for the Middle District of Florida. Bankruptcy Judge Jerry A. Funk is presiding over these cases. The Plaintiff has retained the legal services of Berger Singerman PA. Plainfield Asset Management, LLC has been sued for $19,147,000.00, making it the largest action in the group.This company was founded in February 2005 by Max Holmes. The firm manages investment capital for institutions and high net worth individuals based in the United States and abroad. Plainfield has offices in Stamford, Connecticut and Summit, New Jersey.
Matterhorn Group, Inc. was founded in 2004 and is based in Las Vegas, Nevada. The company was formed to gather frozen novelty manufacturing companies in the western United States. Matterhorn is engaged in the business of producing ice cream novelty products for the food industry in the western United States. On July 26, 2010, Matterhorn along with its affiliates, filed for voluntary chapter 11 bankruptcy protection in the Bankruptcy Court for the Eastern District of California (Sacramento). Since the filing of the bankruptcy petition, Matterhorn and its affiliates have continued possession and management of their businesses and properties as ‘Debtors in Possession’. Matterhorn and its affiliatess initiated 52 adversaries between August 17, 2011 and August 19, 2011 in the Bankruptcy Court for the Eastern District of California (Sacramento). The Plaintiff has retained the legal services of Levene, Neale, Bender, Yoo & Brill L.L.P. Bankruptcy Judge Michael S. McManus is presiding over the cases. The largest action in the group has been filed against QCS Purchasing, LLC for an amount of $2,350,000.00. QCS is a fully-integrated purchasing company based in Illinois, USA, engaged in providing competitive costs in packaging, resin, commodities, ingredients, cleaners, sanitizers, automotive and other valuable offerings crucial to food, dairy and agricultural businesses.
Ultimate Acquisition Partners, LP (UAP) was wholly owned by Ultimate Acquisitions, LLC, a Delaware limited liability company. The company was a specialty retailer of high-end home entertainment and consumer electronics. It operated 46 stores in the United States under the name “Ultimate Electronics”. On January 26, 2011, UAP and its affiliate filed for voluntary bankruptcy relief under chapter 11 in the Bankruptcy Court for the District of Delaware. The bankruptcy case was later converted to a chapter 7 case. Trustee Alfred T. Giuliano initiated approximately 74 adversary actions in July 2011 in the Bankruptcy Court for the District of Delaware. Bankruptcy Judge Mary F. Walrath is presiding over the cases. The Trustee has retained the services of Pachulski Stang Ziehl & Jones LLP as counsel. The largest action in the group is filed against Panasonic Corporation of North America for an amount $12,036,783.05. Panasonic Corporation is in the business of selling an array of computer and electronic products with its principal place of business located int Secaucus, New Jersey.