Dismissed For No Payment
July 27, 2017, Delaware – The Plaintiff brought a preference lawsuit against our client, a supplier of steel pipes for oil and gas drilling, to avoid and recover an amount totaling $580,974.20 as alleged preferential, fraudulent, and post-petition transfers. Based on our Position statement, we showed that the alleged transfers were exempted from preference as they were made under an ordinary course of business and contemporaneous exchange defense. We also established that the debtor received reasonably equivalent values in exchange for the transfers at issue and that all the alleged transfers were made before the petition date. There were no post-petition transfers. We further showed that a portion of transfers were pre-payments and they did not amount to an antecedent debt. Based on our strong arguments, the plaintiff agreed to dismiss the case.