On from November 8, 2011 to November 16, 2011, Robert L. Geltzer, Esq., as Chapter 7 Trustee in the BH S&B Holdings, LLC aka Steve & Barry’s Bankruptcy, commenced Chapter 5 preferential transfer recovery litigation with the filing of 79 complaints in the Southern District of New York.

Adversary Proceedings Overview

Lead Bankruptcy Case Name (Case Number): BH S&B Holdings, LLC aka Steve & Barry's (08-14604)

Bankruptcy Court District (Division): Southern District of New York

Petition Date: The cases were filed under Chapter 11 on November 19, 2008. On November 16, 2010, the Debtors' cases were converted to ones under Chapter 7 of the Bankruptcy Code and the interim trustee was appointed on that date. The Section 341 meeting of creditors was held on April 26, 2011 and the interim trustee's appointment would have been made permanent on that date.

Associated Cases: BH S& B Holdings, LLC, BH S&B Distribution LLC; BH S&B Lico LLC; BH S&B Retail LLC; BHY S&B Intermediate Holdco LLC; Cubicle Licensing LLC; Fashion Plate Licensing LLC; and Heritage Licensing LLC

Plaintiff: Robert L. Geltzer, Esq., as Chapter 7 Trustee

Number of Proceedings: 79

When Filed: from November 8, 2011 to November 16, 2011

Adversary Proceeding Judge: U.S. Bankruptcy Judge Martin Glenn

Plaintiff's Counsel: Squire Sanders & Dempsey (US) LLP (New York, NY) attorneys Robert A. Wolf and Andrea K. Fisher

Avoidance Period: The complaint identifies the preference period as the period "on or within the 90-day period preceding the Petition Date".

 

Motion Practice Note:Motion practice in these mass adversary proceedings should be interesting to watch. These factually anemic complaints filed by a Chapter 7 trustee whose appointment became permanent almost 2 1/2 years after the bankruptcy filing may test willingness of the Bankruptcy Court for the Southern District of New York to follow two Delaware Section 547 bankruptcy preference precedents - Valley Media v. Borders (In re Valley Media), 288 B.R. 189 (Bankr. D. Del 2003) and Singer v. Franklin Boxboard Co. (In re American Pad & Paper ), 478 F.3d 546 (3rd Cir. 2007).

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