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ARTICLE · 22 DECEMBER 2014

Conex Bankruptcy – Summary Judgment In A Preference Action

Fox Rothschild LLP
Fox Rothschild LLP
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In an 18 page opinion released December 18, 2014 in the Conex Holdings bankruptcy (Bank. D. Del. 11-10501), Judge Sontchi of the Delaware Bankruptcy Court analyzed the "ordinary course of dealings" defense to a preference action between the Debtors and Industrial Specialists Inc

United StatesInsolvency/Bankruptcy/Re-Structuring
L. John Bird
L. John Bird
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In an 18 page opinion released December 18, 2014 in the Conex Holdings bankruptcy (Bank. D. Del. 11-10501), Judge Sontchi of the Delaware Bankruptcy Court analyzed the "ordinary course of dealings" defense to a preference action between the Debtors and Industrial Specialists Inc, the preference defendant ("Defendant"), in granting summary judgment in favor of the Defendant.  Judge Sontchi's opinion is available here (the "Opinion").

Background

On February 21, 2011, involuntary petitions for relief under chapter 11 were filed against Conex and certain affiliates.  On February 24, 2011, the involuntary chapter 11 cases were consensually converted to voluntary cases under chapter 7.  Charles A. Stanziale, Jr. (the "Trustee") was appointed as the Debtors' chapter 7 trustee.  As part of the Trustee's responsibilities, he is tasked with recovering transfers made by the Debtors within the 90 days before the Debtors' bankruptcy filing.  These transfers are presumed by

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