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ARTICLE · 19 APRIL 2016

THQ v. Starcom – Preference Action Dismissed

Fox Rothschild LLP
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Judge Walrath of the Delaware Bankruptcy Court granted a defendant's motion to dismiss a preference complaint, but granted the plaintiff leave to amend.

United StatesInsolvency/Bankruptcy/Re-Structuring
L. John Bird
L. John Bird
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Summary

In yet another straight-forward 15 page decision signed April 18, 2016, Judge Walrath of the Delaware Bankruptcy Court granted a defendant's motion to dismiss a preference complaint, but granted the plaintiff leave to amend. Judge Walrath's opinion is available here (the "Opinion"). Numerous posts on this blog discuss other opinions issued by the Delaware Bankruptcy Court dealing with preference payments, as can be seen here. PREFERENCE OPINION POSTS

Background

My colleague, Carl Neff, published a blog post when THQ first started filing preference actions. You can read it here: THQ Inc. Preference Actions Filed

THQ was a publisher of video games, including such franchises as Saints Row and Darksiders. Unfortunately for fans of those series, however, THQ was unable to keep pace with its secured debt. After it failed to make a loan payment, it filed for bankruptcy. Prior to bankruptcy, THQ had engaged the Starcom defendants to provide media and

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