Mallinckrodt PLC – Preference Defense Lawyer

Beginning on October 4, 2022, The Mallinckrodt General Unsecured Claims Trust, through its trustee Heather L. Barlow began filing complaints seeking to: (1) avoid and recover from the individual defendants alleged preferential transfers of property that occurred during the 90 day period prior to Debtor’s initial bankruptcy filing and (2) to disallow any claims held or filed by the individual defendants, pursuant to Sections 547, 550 and 502 of the United States Bankruptcy Code.

Approximately 8 such preference cases have been filed so far.

The bankruptcy case and these adversary actions are before the Honorable John T. Dorsey.

A complete list of the Debtors in these chapter 11 cases is available on the website of the Debtors’ claims and noticing agent at http://restructuring.primeclerk.com/Mallinckrodt. The Debtors are: Mallinckrodt PLC, Acthar IP Unlimited Company, IMC Exploration Company, Infacare Pharmaceutical Corporation, INO Therapeutics LLC, Ludlow LLC, MAK LLC, Mallinckrodt APAP LLC, Mallinckrodt ARD Finance LLC, Mallinckrodt ARD Holdings Inc., Mallinckrodt ARD Holdings Limited, Mallinckrodt ARD IP Unlimited Company, Mallinckrodt ARD LLC, Mallinckrodt Brand Pharmaceuticals LLC, Mallinckrodt Buckingham Unlimited Company, Mallinckrodt Canada ULC, Mallinckrodt CB LLC, Mallinckrodt Critical Care Finance LLC, Mallinckrodt Enterprises Holdings, Inc., Mallinckrodt Enterprises LLC, Mallinckrodt Enterprises UK Limited, Mallinckrodt Group S.a.r.l., Mallinckrodt Holdings GmbH, Mallinckrodt Hospital Products Inc., Mallinckrodt Hospital Products IP Unlimited Company, Mallinckrodt International Finance SA, Mallinckrodt International Holdings S.a.r.l., Mallinckrodt IP Unlimited Company, Mallinckrodt LLC, Mallinckrodt Lux IP S.a.r.l., Mallinckrodt Manufacturing LLC. Mallinckrodt Pharma IP Trading Unlimited Company, Mallinckrodt Pharmaceuticals Ireland Limited, Mallinckrodt Pharmaceuticals Limited, Mallinckrodt Quincy S.a.r.l., Mallinckrodt UK Finance LLP, Mallinckrodt UK Ltd, Mallinckrodt US Holdings LLC, Mallinckrodt US Pool LLC, Mallinckrodt Veterinary, Inc., Mallinckrodt Windsor Ireland Finance Unlimited Company, Mallinckrodt Windsor S.a.r.l., MCCH LLC, MEH, Inc., MHP Finance LLC, MKG Medical UK Ltd, MNK 2011 LLC, MUSHI UK Holdings Limited, Ocera Therapeutics, Inc., Petten Holdings Inc., SpecGx Holdings LLC, SpecGx LLC, ST Operations LLC, ST Shared Services LLC, ST US Holdings LLC, ST US Pool LLC, Stratatech Corporation, Sucampo Holdings Inc., Sucampo Pharma Americas LLC, Sucampo Pharmaceuticals, Inc., Therakos, Inc., Vtesse LLC, WebsterGx Holdco LLC, and Mallinckrodt Equinox Finance LLC.

Procedural Background

On October 12, 2020 (the “Petition Date”), the Debtors each filed voluntary petitions under chapter 11 of the Bankruptcy Code.

Plaintiff Mallinckrodt GUC Trust was established pursuant to the Debtor’s Second Amended Chapter 11 Plan of Liquidation. Heather Barlow, solely in her capacity as the General Unsecured Claims Trustee of the Mallinckrodt GUC General Unsecured Claims Trust (the “Trustee”) is the duly appointed trustee of the Mallinckrodt GUC Trust, which is authorized to pursue and prosecute avoidance actions on behalf of the Debtor’s estate.

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/

The following Adversary Proceedings were filed in relation to the bankruptcy of Mallinckrodt PLC, Delaware Bankruptcy Case No. 20-12522-JTD.

On October 4, 2022:
22-50424-JTD Barlow v. Montgomery
22-50425-JTD Barlow v. Hoffmann
22-50426-JTD Barlow v. First Object Inc.
22-50427-JTD Barlow v. Davie
22-50428-JTD Barlow v. Life Ins. Co. of N. Am.
22-50429-JTD Barlow v. MaxCare LLC
22-50430-JTD Barlow v. Stratacom Inc.
22-50431-JTD Barlow v. Linstroth
If you conducted business with Mallinckrodt PLC or any of the other Debtors, and especially 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.