CR Holding Liquidating, Inc. – Preference Defense Lawyer
Beginning on October 17, 2019, CR Holding Liquidating, Inc. and its affiliated debtors and debtors in possession began filing complaints seeking to avoid and recover alleged preferential and/or fraudulent transfers pursuant to Sections 547, 548, and/or 550 of the United States Bankruptcy Code.
The complete list of Debtors in these Chapter 11 cases are: CR Holding Liquidating Inc. (f/k/a Charlotte Russe Holding Inc.); CR Holdings Liquidating Corporation (f/k/a Charlotte Russe Holdings Corporation); CR Intermediate Liquidating Corporation (f/k/a Charlotte Russe Intermediate Corporation); CR Enterprise Liquidating, Inc. (f/k/a Charlotte Russe Enterprise, Inc.); CR Liquidating, Inc. (f/k/a Charlotte Russe, Inc.); CR Merchandising Liquidating, Inc. (f/k/a Charlotte Russe Merchandising, Inc.); and CR Administration Liquidating, Inc. (f/k/a Charlotte Russe Administration, Inc.).
Procedural History:
On February 3, 2019 (the “Petition Date”), each of the Debtors filed voluntary petitions for relief under chapter 7 of the Bankruptcy Code. The Debtors are operating their businesses and managing their properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. The Court has entered an order for joint administration of these cases [Bankr. D.I. 75].
These adversary actions are before the Honorable Laurie S. Silverstein.
Background, as alleged by Plaintiff:
Prior to the Petition Date, Plaintiff, as a women’s specialty fashion retailer, maintained business relationships with various business entities, through which Plaintiff regularly purchased, sold, received, and/or delivered goods and services.
As a women’s specialty fashion retailer, Plaintiff regularly purchased goods from various entities including vendors, creditors, suppliers and distributors. Plaintiff also regularly paid for services used to facilitate its business.
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 CR Holding Liquidating, Inc. or any of the Debtors and especially if you have received a demand letter or a complaint or if a complaint has been filed against you or your business even if not served yet, contact us here, 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.