Moon Group, Inc. – Preference and Fraudulent Transfer Defense Lawyer

Beginning on August 10, 2023, Plaintiff Don A. Beskrone, as chapter 7 trustee for Debtor Moon Group, Inc. and the below referenced affiliated Debtors, began filing complaints, thus opening adversary proceedings, seeking: (1) to avoid certain alleged transfers as preferential under Section 547 and/or fraudulent under Section 548 of the Bankruptcy Code, and recover under Section 550 and (2) to disallow the claim(s) held by individual defendants under Section 502. Approximately 23 such complaints have benn filed so far.

The Debtors in these chapter 7 cases, are as follows: Moon Group, Inc.; Moon Landscaping, Inc.; Moon Site Management, Inc.; and Moon Nurseries, Inc. The chapter 7 cases of Rickert Landscaping, Inc. and Moon Wholesale, Inc. were closed, and a final decree entered, on November 22, 2022 and February 14, 2023, respectively.

The bankruptcy case and these adversary actions are before the Honorable Judge J. Kate Stickles.

Procedural History:

On August 12, 2021, each of the Debtors filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware for relief under chapter 11 the Bankruptcy Code commencing the Debtor’s bankruptcy cases.

On August 30, 2021, the Office of the United States Trustee appointed an Official Committee of Unsecured Creditors, however, on February 24, 2022, the United States Trustee disbanded the Committee.

On February 9, 2022, the Court entered an Order Regarding Debtor’s Motion Converting Chapter 11 Cases to Cases Under Chapter 7 for Moon Group, Inc. [Case No. 21-11140 (JKS)], Moon Landscaping, Inc. [Case No. 21-11141(JKS)], Moon Site Management, Inc. [Case No. 21-11143 (JKS)], Moon Wholesale, Inc. [Case No. 21-11144 (JKS)], and Rickert Landscaping, Inc. [Case No. 21-11145 (JKS)], which converted those specific cases to cases under chapter 7 effective as of February 11, 2022 at 5:00 p.m. (ET).

On March 22, 2022, the Court converted the remaining chapter 11 case of Moon Nurseries, Inc. [Case No. 21-11142 (JKS)] to a case under Chapter 7 of the Bankruptcy Code.

On February 16, 2022, the Office of the United States Trustee appointed Don A. Beskrone to serve as the Chapter 7 Trustee in the cases of Moon Group, Inc. [Case No. 21-11140 (JKS)], Moon Landscaping, Inc. [Case No. 21-11141(JKS)], Moon Site Management, Inc. [Case No. 21-11143 (JKS)], Moon Wholesale, Inc. [Case No. 21-11144 (JKS)], and Rickert Landscaping, Inc. [Case No. 21-11145 (JKS)] and, on March 22, 2022, the United States Trustee appointed Don A. Beskrone to serve as the Chapter 7 Trustee in the Moon Nurseries case [Case No. 21-11142 (JKS)]. See Case No. 21-11145, D.I. 541 and Case No. 21-11142.

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/

The following Adversary Proceedings were filed in the bankruptcy of Moon Group, Inc., 21-11140-JKS on August 10 and 11, 2023.

23-50460-JKS Beskrone v. Barclays Bank Delaware
23-50461-JKS Beskrone v. Big D’s Lawncare, LLC
23-50462-JKS Beskrone v. P&B Lawn Service
23-50463-JKS Beskrone, Chapter 7 Trustee of Moon Group, Inc., e v. Capital City Groundskeeping, LLC
23-50464-JKS Beskrone v. Cecil County
23-50465-JKS Beskrone v. JPMORGAN CHASE BANK, N.A.
23-50466-JKS Beskrone, Chapter 7 Trustee of Moon Group, Inc., e v. Delmarva Power & Light Company
23-50467-JKS Beskrone v. Lake Forest Bank & Trust Company, N.A.
23-50468-JKS Beskrone v. Keroscene, Inc.
23-50469-JKS Beskrone v. Fusion, LLC
23-50470-JKS Beskrone v. Grass B Gone
23-50471-JKS Beskrone v. Wight Holdings, Inc.
23-50472-JKS Beskrone v. James River Equipment, Inc.
23-50473-JKS Beskrone v. Lakeland Cemetery Services, Inc.
23-50474-JKS Beskrone v. Loews Nursery, LLC
23-50475-JKS Beskrone v. Merchants Automotive Group, LLC
23-50476-JKS Beskrone v. Rosewoods Transportation, Inc.
23-50477-JKS Beskrone v. Royal Petroleum Corporation
23-50478-JKS Beskrone v. Sabia Landscape, Inc.
23-50479-JKS Beskrone v. Signature Horticultural Services, Inc
23-50480-JKS Beskrone v. SiteOne Landscape Supply LLC
23-50481-JKS Beskrone v. SMP Farms, Inc.
23-50482-JKS Beskrone v. The Grass Groomers, LLC

If you conducted business with Moon Group, Inc. or the related Debtors Moon Landscaping, Inc.; Moon Site Management, Inc.; and Moon Nurseries, Inc. and especially if you have received a demand letter, 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 you are facing and share with you our initial observations at no charge to you.