Connections Community Support Programs, Inc. – Preference and Fraudulent Transfer Defense Lawyer

Beginning on April 17, 2023, Plaintiff Don A. Beskrone, as chapter 7 trustee for the estate of debtor, Connections Community Support Programs, Inc. began filing complaints, thus opening adversary proceedings, seeking: (1) to avoid certain alleged transfers to insiders of the Debtor 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 25 such complaints have benn filed so far.

The bankruptcy case and these adversary actions are before the Honorable Judge Mary F. Walrath.

Procedural History:

On April 19, 2021, the Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code.

On September 27, 2021, the Debtor filed a Motion to Convert Debtor’s Chapter 11 Case to a Case Under Chapter 7 of the Bankruptcy Code. The Court entered an Order converting this case on September 27, 2021.

On September 27, 2021, Don A. Beskrone was appointed to serve as the Interim Chapter 7 Trustee in Debtor’s bankruptcy case. On December 22, 2021, a meeting of creditors as required by 11 U.S.C. § 341 was held and concluded. Mr. Beskrone now serves as the Trustee of the Debtor and its estate under 11 U.S.C. § 702(d).

Background, as alleged by Plaintiff:

“[T]he Debtor was one of Delaware’s largest nonprofit organizations assisting thousands of Delaware’s most vulnerable citizens (and their families), dealing with behavioral health and substance use disorders, housing challenges, and developmental and intellectual disabilities.

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 Connections Community Support Programs, Inc., 21-10723-MFW.

23-50342-MFW Beskrone v. Action Unlimited Resources
23-50343-MFW Beskrone v. AFLAC Incorporated
23-50344-MFW Beskrone v. Ameriflex, LLC
23-50345-MFW Beskrone v. AmerisourceBergen Drug Corporation
23-50346-MFW Beskrone v. Architectural Alliance, Inc.
23-50347-MFW Beskrone v. Balboa Capital Corporation
23-50348-MFW Beskrone v. Barclays Bank Delaware
23-50349-MFW Beskrone v. BBEE, LLC
23-50350-MFW Beskrone v. Beebe Healthcare, Inc.
23-50351-MFW Beskrone v. Carroll Properties, LLC
23-50352-MFW Beskrone v. Life Insurance Company of North America
23-50353-MFW Beskrone v. Sanitary Linen Service, Incorporated
23-50354-MFW Beskrone v. Delmarva Power & Light Company
23-50355-MFW Beskrone v. Dover Air Force Base Properties, LLC
23-50356-MFW Beskrone v. Lanak and Hanna, PC
23-50357-MFW Beskrone v. Netcarrier Telecom, Inc.
23-50358-MFW Beskrone v. Musu
23-50359-MFW Beskrone v. Qualifacts Systems, LLC
23-50360-MFW Beskrone v. SYSCO Eastern Maryland, LLC
23-50361-MFW Beskrone v. TIAA Commercial Finance, Inc.
23-50362-MFW Beskrone v. Crews
23-50363-MFW Beskrone v. UPMC Health Plan, Inc.
23-50364-MFW Beskrone v. U.S.Bank, N.A.
23-50365-MFW Beskrone v. VistaPharm, LLC
23-50366-MFW Beskrone v. Whisman, Giordano & Associates, LLC

If you conducted business with Connections Community Support Programs, 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.