Pack Liquidating, LLC – Preference and Fraudulent Transfer Defense Lawyer

Beginning on September 12, 2023, Plaintiff Official Committee of Unsecured Creditors of Pack Liquidating, LLC, et al., derivatively, on behalf of the below listed debtors and debtors-in-possession 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 90 such complaints have beenn filed so far.

The Debtors in these chapter 11 cases, are as follows: Pack Liquidating, LLC; GV Liquidating LLC; PM Liquidating, LLC; PP Liquidating, LLC; PV Liquidating, LLC; and AB Liquidating, LLC.

The bankruptcy case and these adversary actions are before the Honorable Judge Craig T. Goldblatt.

Background and Procedural History:

As alleged in the Complaints, prior to the bankruptcy, the Debtors were a privately owned tech-enabled e-commerce company. The Debtors operated as a third-party retailer and seller of health, beauty, medicinal, and other consumer products on online marketplaces and direct to-consumer websites in North America. The Debtors provided integrated e-commerce services (including logistics, supply chain and inventory management services), data analytics, and marketing services to brand partners. The Debtors also gave access to their e-commerce platform and consumer base to a select number of lesser known brands.

Following the Petition Date, the Debtors remained in possession of their assets and continued to operate and manage their businesses as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code to implement the wind down of the Debtors’ operations.

On September 13, 2022, the United States Trustee for the District of Delaware appointed the Committee in the Chapter 11 Cases pursuant to Bankruptcy Code section 1102.

On May 19, 2023, the Court entered the Order Approving Stipulation and Order Granting Derivative Standing to the Official Committee of Unsecured Creditors to Commence Preference and Related Chapter 5 Litigation Claims on Behalf of the Debtors’ Estates. That order granted derivative standing to the Committee to investigate, assert, and settle preference claims and related Chapter 5 causes of action on behalf of the Debtors’ estates.

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 Pack Liquidating, LLC, et al., 22-10797-CTG on September 12 and 14, 2023.

23-50494-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. 3 Bridge Solutions LLC
23-50495-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. 3M Company
23-50496-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. A.P.R. Executive Search, Inc.
23-50497-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Abel Womack, Inc.
23-50498-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Adecco USA, Inc.
23-50499-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Amaro’s Cleaning, LLC
23-50500-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Amazon Web Services, Inc.
23-50501-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. American International Services Limited Liability
23-50502-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. AmerisourceBergen Drug Corporation
23-50503-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Amity Vacuum Inc.
23-50504-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Attentive Mobile Inc.
23-50505-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Avalon Integration, Inc.
23-50506-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Bausch Health US, LLC
23-50507-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Bayer Healthcare LLC
23-50508-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Beyond Technologies Consulting (USA) Inc.
23-50509-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Bi-Lo Distributors Ltd.
23-50510-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Brecham Group, LLC
23-50511-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Cablevision Lightpath LLC
23-50512-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. CarbonKlean, LLC
23-50513-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. CCA Financial, LLC
23-50514-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. CCS Los Angeles Janitorial, Inc.
23-50515-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. ChannelAdvisor Corporation
23-50516-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Combe Incorporated
23-50517-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. ComDesign Global, Corp.
23-50518-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Compensia, Inc.
23-50519-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Compostic Limited
23-50520-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Corporate Coffee Systems, LLC
23-50521-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Cosmopolitan Cosmetics, Inc.
23-50522-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Country Carpet Distributors, Inc.
23-50523-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Data Sales Co., Inc.
23-50524-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. DHL eCommerce Solutions
23-50525-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. EmblemHealth Plan, Inc.
23-50526-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Genomma Lab USA, Inc.
23-50527-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Google LLC
23-50528-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Greenhill & Co., LLC
23-50529-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. GSK Consumer Healthcare Services Inc.
23-50530-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Hiltzik Strategies, LLC
23-50531-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Infosys BPM Limited
23-50532-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Infosys Limited
23-50533-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Intuit Investigative Resources Inc.
23-50534-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Johnson & Johnson Consumer Inc.
23-50535-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Johnson Controls Security Solutions LLC
23-50536-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Kepler Group LLC
23-50537-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Korber Supply Chain US, Inc.
23-50538-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Kyocera Document Solutions New York Metro, Inc.
23-50539-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Lever, Inc.
23-50540-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Lloyd Staffing, Inc.
23-50541-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. L’Oreal USA, Inc.
23-50542-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. L’Oreal USA, Inc.
23-50543-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Maesa Holdings Inc.
23-50544-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Marc Anthony Cosmetics Ltd.
23-50545-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. McGinley Adhesive Distribution Services, Inc.
23-50546-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Montclair Kimberley Academy
23-50547-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. MTBC, LTD.
23-50548-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. National Waste Services, LLC
23-50549-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Nature’s Answer, Inc.
23-50550-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. PataFoods, Inc.
23-50551-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Penske Truck Leasing Co., Limited Partnership
23-50552-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Peter Marcus Paradigm LLC
23-50553-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Pivotal Talent Search LLC
23-50554-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Platinum Equity, LLC
23-50555-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Prime Packaging Corp.
23-50556-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Property Security Services, Inc.
23-50557-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. PSI Systems, Inc.
23-50558-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Pupperoni LLC
23-50559-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Randstad US, LLC
23-50560-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Raymond Handling Solutions, Inc.
23-50561-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Renpure LLC
23-50562-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. S & J Landscape & Construction, Inc.
23-50563-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. S.C. Johnson & Son, Inc.
23-50564-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Sage Capital Investments LLC
23-50565-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Salesforce, Inc.
23-50566-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Sel Beauty, Inc.
23-50567-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Shark Retail LLC
23-50568-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Sheralven Enterprises Ltd.
23-50569-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Smart Source, LLC
23-50570-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. TForce Freight, Inc.
23-50571-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. The Hello Cup Company Limited
23-50572-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. The Nature’s Bounty Co.
23-50573-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. TIGI Linea Corp.
23-50574-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Tri Point Packaging, LLC
23-50575-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Unilever United States, Inc.
23-50576-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. United Parcel Service of America, Inc.
23-50577-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. United Parcel Service, Inc.
23-50578-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Veritiv Operating Company
23-50579-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Whittard of Chelsea
23-50580-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Wondersauce, LLC
23-50581-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Wrap-N-Pack, Inc.
23-50582-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. Wunderland Group LLC
23-50583-CTG Off. Comm. of Unsec. Cred. of Pack Liquid., LLC v. 4X Commerce 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.