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ARTICLE · 10 FEBRUARY 2015

Preference Actions filed In CPI, Corp.

Pierson Ferdinand LLP
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Charles A. Stanziale, Jr., as the Chapter 7 Trustee of CPI, Corp., et al., filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers.

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

On February 6, 2015, Charles A. Stanziale, Jr., as the Chapter 7 Trustee (the "Trustee") of CPI, Corp., et al. ("CPI" or the "Debtors"), filed approximately 44 preference complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, to disallow claims pursuant to Section 502(d), for attorneys' fees, and prejudgment interest.

Background

By way of background, CPI filed petitions for bankruptcy in the District of Delaware on May 1, 2013 under Chapter 7 of the Bankruptcy Code. CPI was an operator of more than 2,000 U.S. portrait studios in locations such as Wal-Mart and Sears stores. CPI was forced to liquidate its assets after receiving a fourth forbearance agreement from its lenders.

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