December 20, 2021, District of Delaware – RPA Asset Management, as Trustee of the MDC Litigation Trust for the bankruptcy estate of MTE Holdings LLC et al., files a complaint against Chase Harris, Inc. to avoid and recover certain transfers allegedly made during ninety (90) day period before the commencement of the MTE’s Chapter 11 cases pursuant to §§ 547 and 550 of the Bankruptcy Code.
Before MTE filed for bankruptcy, it owned and operated a privately held exploration and production company focused on acquiring and developing oil and natural gas resources in the onshore United States. As alleged in the Trustee’s complaint, MTE’s financial difficulties that led to the decision to file the Chapter 11 Cases are attributable to a combination of factors, including – high levels of indebtedness, which forced the Debtors to dedicate a substantial portion of their cash flow to paying interest and principal; defaults under the Debtors’ lending agreement and credit facility; a decline in oil and natural gas prices and production, all of which placed significant stress on its liquidity position for many months leading up to the petition date.
Chase Harris operated a business that provided goods, services, and transportation in the oil and gas industry. Specifically, the complaint alleges that Chase Harris transacted such business with and allegedly received transfers worth $600,000.00 from one or more of the Debtors, namely MDC Reeves, that allegedly qualify as a preference under the Bankruptcy Code Section 547. RPA also argues that it has conducted reasonable due diligence before bringing this lawsuit against Chase Harris and took into account any defenses presented by the latter in response to the Trustee’s demand letter.
Finally, RPA requests the Court to grant judgment in its favor and avoid the alleged transfers for the benefit of the bankruptcy estate. The case is In re MTW Holdings, LLC, et al., Case No. 21-51416-CTG. Honorable Judge Craig T Goldblatt oversees the Debtor’s bankruptcy case, and The Rosner Law Group LLC represents the MDC Litigation Trust.
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