BeavEx Holding Corporation – Preference Defense Lawyer

On February 17, 2021, George L. Miller, the Chapter 7 Trustee for the bankruptcy estates of BeavEx Holding Corporation, et al. filed approximately 42 complaints seeking to avoid and recover preferential transfers and to disallow any claims held by the individual defendants.

Pursuant to 11 U.S.C. §§ 547 and 550, the Trustee seeks to avoid and recover from the individual defendants, or from any other person or entity for whose benefit the transfers were made, all preferential transfers of property made for or on account of an antecedent debt made to or for the benefit of the Defendant by the Debtor during the ninety-day period prior to the filing of the Debtor’s bankruptcy petitions.

Procedural History:

On or about February 18, 2019, the Debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. On July 23, 2019 these cases were converted to Chapter 7 of the Bankruptcy Code.
The Debtors in these cases are: BeavEx Holding Corporation; BeavEx Acquisition, Inc.; BeavEx incorporated; JNJW Enterprises, Inc.; and USXP, LLC.

The bankruptcy case and these adversary actions are before the Honorable Laurie S. Silverstein.

Background, as alleged by Plaintiff:

Prior to filing for bankruptcy, the Debtors were a logistic courier. The Debtors regularly purchased goods and services from numerous entities, and regularly paid for such goods and services.

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 BeavEx Holding Corporation, 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.