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ARTICLE · 31 MARCH 2014

AFA Investment Preference Actions Filed

Pierson Ferdinand LLP
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On March 28, 2014, AFA Investment Inc. filed approximately 125 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims of the defendants pursuant to Section 502(d), and seeking attorneys’ fees.

United StatesInsolvency/Bankruptcy/Re-Structuring
Carl Neff
Carl Neff

On March 28, 2014, AFA Investment Inc. filed approximately 125 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims of the defendants pursuant to Section 502(d), and seeking attorneys' fees.  AFA Investment Inc., and various affiliated entities (the "Debtors") filed petitions for bankruptcy in the District of Delaware on April 2, 2012.

By way of background, on July 2, 2013, the Court approved an Order approving the formation of an Advisory Committee for the purposes of management of prosecution of avoidance actions.  The Court confirmed the Debtors' First Amended Joint Chapter 11 Plan of Liquidation on March 7, 2014.

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