Heritage Home Group, LLC – Preference Defense Lawyer

Beginning on July 16, 2020, Alfred T. Giuliano in his capacity as Chapter 7 Trustee of Heritage Home Group, LLC, et al. began filing complaints seeking to avoid and recover certain alleged preferential transfers and and unauthorized transfers that cleared post-petition, pursuant to Sections 547, and 550 of the United States Bankruptcy Code. Approximately 26 such complaints have been filed so far.

The Chapter 7 Trustee seeks to avoid and recover from Defendants, or from any other person or
entity for whose benefit the transfers were made, 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 Debtors are Heritage Home Group LLC; HH Global II B.V.; HH Group Holdings US, Inc.; HHG Real Property LLC; and HHG Global Designs LLC.

Procedural History:

On July 29, 2018 (the “Petition Date”), each of the Debtors commenced a voluntary case under Chapter 11 of the Bankruptcy Code.

On March 15, 2019, each of the Debtor’s Chapter 11 cases were converted to cases under Chapter 7 of the Bankruptcy Code.

These adversary actions are before the Honorable Brendan L. Shannon.

Background, as alleged by Plaintiff:

Prior to the Conversion Date, the Debtors offered customers a wide array
of home furnishings under several well-known brands, including Thomasville, Broyhill, Lane,
Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, and Maitland-Smith.

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 Heritage Home Group, LLC, or any of the Debtors, and.especially if you have received a demand letter or a complaint or 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.