Sienna Biopharmaceuticals, Inc. – Preference Defense Lawyer
On September 15, 2021, Plaintiff Jeoffrey L. Burtch, as Chapter 7 trustee for the bankruptcy estate of Debtor Sienna Biopharmaceuticals, Inc. began filing complaints in adversary proceedings, pursuant to sections 547 and 550 of the Bankruptcy Code, seeking to avoid and recover certain transfers made to the individual defendant(s) within 90 days prior to the commencement of the Debtor’s Bankruptcy case.
The Trustee seeks to avoid and recover from Defendants all preferential transfers of property that occurred during the ninety (90) day period prior to the commencement of the bankruptcy proceedings of the Debtors. The Trust also seeks to disallow Defendants’ claims in the bankruptcy.
The bankruptcy case and these adversary actions are before the Honorable Mary F. Walrath.
Background, as alleged by Plaintiff:
Prior to the Petition Date, the Debtor was a clinical-stage biopharmaceutical and medical device company engaged in drug and medical device development, with a focus on skin therapies.
Procedural History:
On September 16, 2019 , the Debtor commenced the Bankruptcy Case by filing a voluntary petition for relief under chapter 11 of the Bankruptcy Code.
On December 18, 2019, the Bankruptcy Case was converted to a case under chapter 7 of the Bankruptcy Code.
Jeoffrey L. Burtch was appointed as interim trustee on or about December 18, 2019, pursuant to Section 701 of the Bankruptcy Code. The Trustee now serves as trustee pursuant to Section 702(d).
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/ and Fraudulent Transfer Defense Litigation: https://www.tobialaw.com/practice-areas/delaware-preference-defense-lawyer/defense-of-fraudulent-transfer-actions/
If you conducted business with Sienna Biopharmaceuticals, Inc., and especially if a complaint has been filed against you or your business, even if not served yet, 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.