AS Wind Down, LLC (f/k/a Avenue Stores, LLC) – Preference Defense Lawyer
On May 11, 2021, David W. Carickhoff, as Chapter 7 Trustee for the bankruptcy estates of estates of AS Wind Down LLC (f/k/a/ Avenue Stores, LLC) and related debtors, began filing complaints seeking to avoid and recover certain transfers that were made by the Debtors to the individual defendant within 90 days prior to the commencement of their Bankruptcy cases.
Approximately 35 such complaints have been filed so far.
The Debtors in these chapter 7 cases are AS Wind Down, LLC (f/k/a Avenue Stores, LLC); OURGII Wind Down, LLC (f/k/a Ornatus URG Holdings, LLC) (1146); OURGRE Wind Down, LLC (f/k/a Ornatus URG Real Estate, LLC); and OURGGC Wind Down, LLC (f/k/a Ornatus URG Gift Cards, LLC).
The bankruptcy case and these adversary actions are before the Honorable Laurie S. Silverstein.
Procedural History:
On August 16, 2019, each of the Debtors filed a voluntary petition under chapter 11 of the Bankruptcy Code. The Debtors’ cases are jointly administered for administrative purposes only.
Each of the Debtors’ cases was converted to chapter 7 on November 22, 2019 and David W. Carickhoff was appointed as trustee on the same date.
Common Defenses in Preference Actions
The United States Bankruptcy Code provides many affirmative defenses to preference actions, contained within Section 547(c). For example, the most common defenses that may be available to a Defendant under Section 547(c) may include:
- the transfer was a contemporaneous exchange for new value given to the debtor (i.e., the debtor received something of value in exchange for the transfer); 11 U.S.C. §547(c)(1);
- after such transfer, Defendant gave new value to or for the benefit of the debtor (i.e., the Defendant extended additional credit to the Debtor after receiving the transfer) 11 U.S.C. §547(c)(4); or
- the transfer was in payment of a debt incurred by the debtor in the ordinary course of business or financial affairs of the debtor and the recipient (i.e., Defendant made the transfer under ordinary business terms). 11 U.S.C. §547(c)(2).
For more information, see our pages on Preference Defense Litigation: http://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/ and Fraudulent Transfer Defense Litigation: https://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/defense-of-fraudulent-transfer-actions/
If you conducted business with Avenue Stores, LLC or any of the debtors, and especially if a complaint has been filed against you or your business, even if not served yet, email us at info@tobialaw.com or call the firm’s Wilmington offices directly at (302) 655-5303 to schedule an initial consultation. We can discuss the situation and share with you our initial observations at no charge.