Univita Holdings, et al. – Preference Defense Lawyer

Beginning on July 19, 2017, David W. Carickhoff, as Chapter 7 Trustee of the Estates of Univita Holdings, et al. began filing preference 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. So far, 46 such complaints have been filed, but Plaintiff has time to file more.

Background, as alleged by Plaintiff:

“Prior to the commencement of the Chapter 7 Cases, the Debtors (a) held third party administrator licenses; (b) provided services to the long-term care insurance industry; (c) provided nursing case management services; (d) provided home healthcare management services; (e) provided durable medical equipment services; (f) provided oxygen and respiratory therapy; (g) provided healthcare utilization management services; (h) conducted medical claim adjudications; (i) provided drug and infusion therapy services; (j) provided in-home nursing services; and (k) provided administrative services to health plans in New York.”

Procedural History:

The Debtors in these chapter 7 cases are: Univita Health Inc., Univita Health Systems Holdings, Univita Healthcare Solutions LLC, Univita of Georgia LLC, Univita of Tennessee, Inc., Univita Healthcare Solutions of Georgia, Inc., All-Med Management Systems of New York Independent Practice Association, Incorporated, Univita Health Holdings Corp., Univita Homecare Holdings LLC, Univita Homecare Solutions LLC, Univita of Florida, Inc. and Univita Holdings LLC The Chapter 7 Cases are jointly administered for procedural purposes pursuant to Rule 1015(b) of the Bankruptcy Rules.

On August 28, 2015 (the “Petition Date”), each debtor (collectively, the “Debtors”) commenced their Bankruptcy Cases, as each filed in the United States Bankruptcy Court for the District of Delaware (the “Court”) a petition for relief under Chapter 7 of title 11 of the United States Code (the “Bankruptcy Code”).

These adversary actions and the Chapter 7 proceedings are before the Honorable Mary F. Walrath.

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 any of the Univita entities and especially if you have received a demand letter or a complaint, 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.