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ARTICLE · 19 MAY 2013

Berkline/BenchCraft Plan Administrator Files Preference Actions

Fox Rothschild LLP
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On April 24, 2013, Robert S. Bernstein, Plan Administrator for the Berkline/BenchCraft bankruptcy estates, began filing complaints with the Delaware Bankruptcy Court seeking to recover what he contends are preferential transfers.

United StatesInsolvency/Bankruptcy/Re-Structuring
Jason Cornell
Jason Cornell
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Introduction

On April 24, 2013, Robert S. Bernstein, Plan Administrator for the Berkline/BenchCraft bankruptcy estates, began filing complaints with the Delaware Bankruptcy Court seeking to recover what he contends are preferential transfers.  For those not familiar with preference actions, Bernstein contends that certain payments, or "transfers", made to creditors in the months prior to the Berkline bankruptcy are subject to avoidance and recovery pursuant to sections 547 and 550 of the Bankruptcy Code.  According to court papers filed by Bernstein, a pretrial conference is scheduled for July 9, 2013 at 10:30 a.m..

Background

Berkline and various related entities filed chapter 11 petitions for bankruptcy on May 2, 2011.  According to the Declaration of Berkline's Chief Restructuring Office (the "Decl."), Berkline was a "leading North American designer and manufacturer of upholstered and reclining furniture."  Decl. at *2. Berkline manufactured home theater

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