Pipeline Foods, LLC – Preference Defense Lawyer

Beginning on January 24, 2023 Nauni Manty, in her capacity as the liquidating trustee for the Pipeline Foods Liquidating Trust for the Pipeline Foods Liquidating Trust began filing complaints seeking to avoid and recover preferential transfers and to disallow any claims held by individual Defendants.

Approximately 20 such complaints have been filed so far.

The bankruptcy case and these adversary actions are before the Honorable Karen B. Owens.

Procedural History

On July 8, 2021 and July 12, 2021, each of the Debtors filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code.

The Debtors’ and Creditors’ Committee’s Amended Joint Plan of Liquidation was confirmed by an order dated March 1, 2022. The effective date of the Plan occurred on March 17, 2022.

Pursuant to the Confirmation Order, the Liquidating Trustee retained all causes of action including those arising under chapter 5 of the Bankruptcy Code.

The chapter 11 cases of the following affiliates of the Debtor were closed effective as of April 12, 2022: Pipeline Holdings, LLC; Pipeline Foods Real Estate Holding Company, LLC; Pipeline Foods, ULC; Pipeline Foods Southern Cone S.R.L.; and Pipeline Foods II, LLC (collectively, with Pipeline Foods, LLC, the “Debtors”).

Background of Debtor, as alleged by Plaintiff:

The Debtors were a supply chain solutions company focused exclusively on
organic, non-G.M.O. and regenerative food and feed. Prior to the Petition Date, the Debtors
maintained relationships with various business entities through which they regularly purchased,
sold, received and/or delivered goods and services. The Debtors also regularly paid for goods and
services used to operate their business.

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/

The following Adversary Proceedings were filed in relation to the bankruptcy of Pipeline Foods, LLC, 21-11002-KBO.

On January 24, 2023:
23-50005-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Broskoff Structures, Inc.
23-50006-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Lakeland Organics, LLC
23-50007-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Schlaak d/b/a Schlaak Trucking
23-50008-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. D&B Johnson Farms, LLC
23-50009-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. C.H. Robinson Company, Inc.
23-50010-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Superior Brokerage Services, Inc.

On February 23, 2023:
23-50111-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Rossow
23-50112-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. R&W Farms, LLC
23-50113-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Home 40, Ltd.
23-50114-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Gingerich
23-50115-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. M&L Commodities, Inc.

On March 17, 2023:
23-50140-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Las Tierras Corp.
23-50141-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. American Carriers of Minnesota, Inc.
23-50142-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. KWC Farms, Inc.
23-50143-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Valley Express, Inc.
23-50144-KBO Nauni Manty, as Liquidating Trustee for Pipeline Foods LLC v. Willrett Natural Farm, LLC

On March 18, 2023:
23-50382-KBO Manty v. Crooked Creek Acres, Inc.
23-50383-KBO Manty v. Oakdale Trading Company, Inc.
23-50384-KBO Manty v. Rowland Seeds, Inc.

On March 19, 2023:
23-50385-KBO Manty v. Motl Dairy Farm, Inc.

If you conducted business with Pipeline Foods, LLC or any of the other affiliated Debtors, and especially 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 and share with you our initial observations at no charge.