RoomStore, Inc. Adversary Proceedings

RoomStore_buildingRichmond, Virginia.  December 5, 2013.  The liquidating trustee for RoomStore, Inc., Lynn Tavenner, has begun to bring preference claims against RoomStore Inc.’s vendors to recover payments made in the 90 days before it filed bankruptcy on December 12, 2011.  This is common practice in a large liquidating bankruptcy case, as creditors and vendors are often sued by trustees to avoid preferential payments.  The following adversary proceedings have been initiated in the RoomStore, Inc. case:

Adversary case 13-03312. Complaint against BDO USA
Adversary case 13-03309. Complaint against City of Austin
Adversary case 13-03308. Complaint against City of Dothan t/a Dothan Utilities
Adversary case 13-03307. Complaint against Public Works Commission of the City of
Adversary case 13-03306. Complaint against South Carolina Public Service Authority t/a Santee Cooper
Adversary case 13-03305. Complaint against Elite Collections, Inc. d/b/a Vintage Verandah, Bibby International Trade Finance, Inc., Bibby Financial Services (Holdings) Inc.
Adversary case 13-03304. Complaint against Genesis Furniture Industries, Inc., Amerisource Funding, Inc.
Adversary case 13-03303. Complaint against Telstar Enterprise Limited
Adversary case 13-03302. Complaint against Step Furniture Manufacturer SDN
Adversary case 13-03301. Complaint against OEC Freight (NY) Inc.
Adversary case 13-03300. Complaint against Model Furniture & Clocks Co. Ltd.
Adversary case 13-03299. Complaint against Man Wah Holdings, Ltd.
Adversary case 13-03298. Complaint against Travelers Companies, Inc.
Adversary case 13-03297. Complaint against Home/Haining Iris Furn. Co. Ltd.
Adversary case 13-03296. Complaint against Scantron Corporation t/a Harland Technology Services
Adversary case 13-03295. Complaint against Haining Home Craft Furniture Co., Ltd.
Adversary case 13-03294. Complaint against Fu Yuan Wood Industry Co., Ltd.
Adversary case 13-03293. Complaint against Edgecombe-Martin County Electric Membership Corporation
Adversary case 13-03292. Complaint against El Paso Electric Company
Adversary case 13-03291. Complaint against Dongguan Hongxin Furniture Co., Ltd.
Adversary case 13-03290. Complaint against Virginia Electric and Power Company t/a Dominion Virginia Power
Adversary case 13-03289. Complaint against Delta Dental of Virginia
Adversary case 13-03288. Complaint against Delivery Service Enterprises, Inc.
Adversary case 13-03287. Complaint against Instyle Furniture Industries SDN BHD
Adversary case 13-03286. Complaint against Tomisho SDN BHD
Adversary case 13-03285. Complaint against Shing Mark Enterprise Co Ltd.
Adversary case 13-03284. Complaint against Purnell Furniture Services Inc.
Adversary case 13-03283. Complaint against P O Shipping Agency (USA), Inc.
Adversary case 13-03282. Complaint against Mori Shige Co Ltd, Morishige Co. Ltd
Adversary case 13-03281. Complaint against M. Marks Furniture SDN BDH
Adversary case 13-03280. Complaint against Maeve Furn. Co. Ltd
Adversary case 13-03279. Complaint against King Jade Industrial Co Ltd
Adversary case 13-03278. Complaint against Joseph Cory Holdings LLC
Adversary case 13-03277. Complaint against Intergo Furniture SDN BDH
Adversary case 13-03276. Complaint against Hangzhou Yi Bei Furniture LLC
Adversary case 13-03275. Complaint against Haining Oyi May Sofa Co Ltd
Adversary case 13-03274. Complaint against Great Veca International Corp
Adversary case 13-03273. Complaint against Einstein International Ltd
Adversary case 13-03272. Complaint against Easy Top International, Inc.
Adversary case 13-03271. Complaint against Cosco North America, Inc.
Adversary case 13-03270. Complaint against FleetCor Technologies, Inc., FleetCor Technologies Operating Company, LLC dba Fuelman
Adversary case 13-03269. Complaint against Fasa Antique Rugs & Tapestries, Inc. t/a Pacific Rugs
Adversary case 13-03268. Complaint against Willis of Virginia Inc.
Adversary case 13-03267. Complaint against Webb-Mason Inc.
Adversary case 13-03266. Complaint against Verizon Communications, Inc., Verizon Business Network Services, Inc.
Adversary case 13-03265. Complaint against US Signs, LLC
Adversary case 13-03264. Complaint against Trupar America Inc.
Adversary case 13-03263. Complaint against Trendwood Inc.
Adversary case 13-03262. Complaint against Steve Silver Company
Adversary case 13-03261. Complaint against Stallings Brothers Inc., Stalling Brothers Holdings, Inc.
Adversary case 13-03260. Complaint against Service Transfer, Inc.
Adversary case 13-03259. Complaint against People 2.0 Global Inc.
Adversary case 13-03258. Complaint against PCL Leasing Corporation, Technology Leasing Concepts, Inc.
Adversary case 13-03257. Complaint against Old Dominion Truck Leasing, Inc.
Adversary case 13-03256. Complaint against Miresco Investment Services, Inc.
Adversary case 13-03255. Complaint against Mechanical Solutions Inc.
Adversary case 13-03254. Complaint against Lloy’d of Chatham Limited Partnership, Capital Business Credit, LLC
Adversary case 13-03253. Complaint against Link Logistics LLC
Adversary case 13-03252. Complaint against K.W. Smith & Son Inc.
Adversary case 13-03251. Complaint against Integrated Waste Analysts, Inc.
Adversary case 13-03250. Complaint against Holts Mechanical, Ltd.
Adversary case 13-03249. Complaint against Holland House Furniture, Hackney Home Furnishings, Inc., The H.T. Hackney Co. Adversary case 13-03248. Complaint against Dunfee Business Automation Inc.
Adversary case 13-03247. Complaint against JP Morgan Chase Bank, N.A., Chase Alliance Partners, LLC, Paymentech, LLC, Chase Paymentech Solutions, LLC
Adversary case 13-03246. Complaint against Corinthian Media Inc., Allbritton Communications Company
Adversary case 13-03245. Complaint against, Inc DBA Blueport Commerce
Adversary case 13-03244. Complaint against Barnes Transportation Services, Inc.
Adversary case 13-03243. Complaint against American Global Logistics LLC
Adversary case 13-03242. Complaint against Sun Delivery LLC
Adversary case 13-03241. Complaint against Tawei Furniture SDN BHD
Adversary case 13-03240. Complaint against Style-Line Furn., Inc.
Adversary case 13-03239. Complaint against Southern Motion, Inc.
Adversary case 13-03238. Complaint against Sealy Mattress Company, Sealy, Inc.
Adversary case 13-03237. Complaint against Millenia USA, LLC
Adversary case 13-03236. Complaint against Leggett & Platt Incorporated
Adversary case 13-03235. Complaint against January 2K Limited
Adversary case 13-03234. Complaint against Home Meridian International, Inc.. d/b/a Samuel Lawrence Furniture Co.
Adversary case 13-03233. Complaint against Hill Craft Furniture Co.
Adversary case 13-03232. Complaint against Futura Leather, Inc.
Adversary case 13-03231. Complaint against Fairmont Seating Company, Inc.
Adversary case 13-03230. Complaint against Elk Trucking Inc. d/b/a Elk Logistics
Adversary case 13-03229. Complaint against Classic Furniture Global Co.
Adversary case 13-03228. Complaint against Bowers & Burrows, Inc
Adversary case 13-03227. Complaint against Blue Ant Furniture Designs LLC
Adversary case 13-03226. Complaint against Benchmaster Furniture LLC
Adversary case 13-03225. Complaint against Bargain Sleep LLC
Adversary case 13-03224. Complaint against Albany Industries Inc.
Adversary case 13-03223. Complaint against Affordable Furniture Mfg. Co., Inc.
Adversary case 13-03222. Complaint against Triton Networks, LLC

The Bankruptcy Code permits a trustee to recover from a creditor payments made in the 90 days before the bankruptcy filing where the payments gave the creditor more than other, similarly situated, creditors would get through the bankruptcy process.  The preference statutes are an attempt to achieve equity between creditors. Nonetheless, creditors are almost always better off attempting to get payment of their claims from their debtors and dealing with any efforts to recover the money when, and if, such attempts are made in bankruptcy.

Bankruptcy Code §547 defines a preference as

  1. Payment on an antecedent (as opposed to current) debt;
  2. Made while the debtor was insolvent;
  3. To a non insider creditor, within 90 days of the filing of the bankruptcy;
  4. That allows the creditor to receive more on its claim than it would have, had the payment not been made and the claim paid through the bankruptcy proceeding.

Defenses to the recovery of a preference are found in 11 U.S.C. 547(c).  They include:

  1. contemporaneous exchanges;
  2. amounts of subsequent credit extended and unpaid;
  3. payments made in the ordinary course of the business of the debtor and the creditor on ordinary business terms;  and
  4. security interests that secure debts that bring new value to the debtor.

These defenses need to be raised in an answer to a preference complaint. The burden of proof lies with the creditor to establish that despite the elements of a preference; the transfer is protected by one or more of these defenses.

The law firm of Ronald Page, PLC has extensive experience defending creditors in preference actions before the Bankruptcy Court.  Please contact our office to contact Ronald Page, a Richmond Virginia Bankruptcy Attorney.