HMR Foods Holding, LP – Preference Defense Lawyer

On June 15, 2018, Alfred T. Giuliano, chapter 7 trustee for the jointly administered estates of HMR Foods Holding, LP, et al., including the estate of Huxtable’s Kitchen, Inc., began filing complaints seeking to avoid and recover alleged preferential and/or fraudulent transfers pursuant to Sections 547, 548, and 550 of the United States Bankruptcy Code. Approximately 76 such complaints have been filed to date.

Procedural History:

On June 24, 2016 (the “Petition Date”), each Debtor commenced a Bankruptcy case by filing a voluntary petition for relief under chapter 7 of the Bankruptcy Code. The Debtors’ chapter 7 cases are jointly administered under Case No. 16-11540 (KJC).

The Debtors in these chapter 7 cases are the following entities are (i) Huxtable’s Kitchen, Inc., a/k/a Handmade Real Foods, Pasta Kitchen, Fresh Selections (Case No. 16-11538-KJC); (ii) HMR Foods, LLC, a/k/a Handmade Real Foods, Huxtable’s Kitchen, Simmering Soup Kitchen, Pasta Kitchen, Fresh Selections (Case No. 16-11539-KJC); (iii) HMR Foods Holding, LP, a/k/a Handmade Real Foods, Huxtable’s Kitchen, Simmering Soup Kitchen, Pasta Kitchen, Fresh Selections (Case No. 16-11540-KJC); (iv) Huxtable’s Kitchen Holding Corp., a/k/a Handmade Real Foods, Simmering Soup Kitchen, Pasta Kitchen, Fresh Selections (Case No. 16-11541-KJC); and (v) Simmering Soup Kitchen, LLC, a/k/a Handmade Real Foods, Huxtable’s Kitchen, Pasta Kitchen, Fresh Selections (Case No. 16-11542-KJC).

These adversary actions are before the Honorable Kevin J. Carey.

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 page on Preference Defense Litigation: http://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/

If you conducted business with Huxtable’s Kitchen, 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 but not yet served against you or your business, 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.