Unsecured Trade Creditors Committee

ABI Committee News

ABI's Annual Spring Meeting: Committee Educational Session

ABI's 26th Annual Spring Meeting, the networking and CLE event of 2008, will be held April 3-6 at Washington, D.C.'s Renaissance Hotel in the Nation's Capital! Join us during cherry blossom season for exciting and informative sessions, including a luncheon keynote by Supreme Court Justice Samuel A. Alito, Jr.

The Unsecured Trade Creditors committee will meet jointly with the Bankruptcy Litigation committee on Saturday, April 5, from 8:00 to 9:30 a.m. to discuss, “An Examination of Preference Litigation Run Amok.”

The program is on the problem of preferences, which have become the bane of every credit department.  After working hard to get the payment in, two years later the preference complaint appears in the mail.  Congress may have intended preferences to "level the playing field" so that all unsecured creditors could share equally in a distribution from the debtor's estate.  In reality, however, preference recoveries often do not benefit unsecured creditors and often seem to benefit only the professionals representing the creditors' trust or the trustee.  This panel will look at preference litigation run amok - examining several different cases in which hundreds of preference cases were pursued and the methods by which the plaintiffs sought recovery.  Is there a way for preference recoveries to be pursued without creating a log jam in bankruptcy courts?  Is there a way to efficiently examine defenses prior to filing cases?  This will be a fascinating program, addressing a serious problem encountered throughout the nation.

 

Know Your Mold

One of the best kept secrets in the tooling industry is an Ohio law that grants a lien to molders and mold-builders for services performed related to dies, molds, patterns and forms. Ohio Molder’s Lien Law is provided in Ohio Revised Code §1333.29 through §1333.31 (Molder’s Lien Law), and the applicable provisions that outline Ohio Mold-builder’s Lien Law (Mold-builder’s Lien Law) are located in Ohio Revised Code §1333.32 through §1333.34.[2]

Read the full article.

 

Beyond New Value and Ordinary Course: An Outside-the-Box Preference Defense

A bankruptcy judge in Texas has issued one of the most compelling preference rulings in recent history. In the chapter 7 case of Brook Mays Music Co. pending in Dallas, the court ordered at the outset of a chapter 7 case that the chapter 7 trustee NOT pursue certain preference actions in an effort to reel in “preference litigation run amok.” In making this ruling the court stated:

… this court is troubled by a trend in large bankruptcy cases, in particular, of preference litigation run amok … trustees suing with reckless abandon, every recipient of a transfer of property of the debtor that occurred within 90 days of the bankruptcy filing, with no consideration of obvious defenses, or [added] what makes economic sense.

Read the full article.

 

Proofs of Claims: Advice to Ensure They Are Allowed Claims

Creditors are often surprised by how difficult it is to allow and issue payment on their proof(s) of claim.[1] Many creditors believe that it is very clear that they are owed money. Indeed, all correctly filed proofs of claim are prima facie allowed until the court determines otherwise. Even if there is an objection to the proof of claim, the debtor has to meet certain standards to overcome the claim’s prima facie validity. This article explains the steps creditors can take to maximize the likelihood their claims will not be disputed, reduced or expunged.

Read the full article.