On November 26, 2012, Brian Cejka, Trustee of the Palm Harbor Liquidating Trust in the Palm Harbor Homes, Inc. n/k/a PHH Co., Inc. Bankruptcy, commenced Section 547 preferential transfer recovery litigation in the District of Delaware.

The associated debtors were manufacturers and marketers of factory-built homes.  Operations were disbursed nationwide and vertically integrated.  As a result, the defendants in these preference actions run across a large number of industry segments.  This is the likely cause of  a concentration of small and middle market defendants.  There also is a higher than usual concentration of smaller preference claims, which will stress the economics of any protracted defense.

The complaints are straight forward 547 preference complaints.  In addition to foregoing extraneous avoidance claims, the complaints show an appreciation of Delaware Bankruptcy Court decisions in 2010 and 2011 establishing stricter pleading standards for preference actions.  Motions to dismiss, for this reason, are likely to be few in number.

The information contained on Exhibit A to the complaints generally reflect a probability of extensive subsequent new value and the need to optimize its application with other defenses. 

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Debtor and Bankruptcy Case Overview

Adversary Proceedings Overview

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Related Materials:

• Registered users can click here to see the full APScans Report for Palm Harbor Homes, Inc. n/k/a PHH Co., Inc. Bankruptcy preferential transfer recovery adversary proceedings.