Main Case: In re: Fresh & Easy LLC; Bankr. Case No. 15-12220 (BLS)
Plaintiff: Official Committee of Unsecured Creditors of Fresh & Easy, LLC
On December 16 through 19, 2016, the Official Committee of Unsecured Creditors of Fresh & Easy, LLC (the “Committee”) filed approximately 200 actions pursuant to Section 547 of title 11 of the United States Code (the “Bankruptcy Code”.) On August 16, 2016, the Debtor and the Committee filed a stipulation (the “Stipulation”) which granted the Committee and its successors in interest standing to pursue certain causes of action under Chapter 5 of the Bankruptcy Code. The Stipulation purports to limit the authority of preferences to a limited number of “Preference Targets,” the list of which was submitted under seal. (Docket Nos. 1137 and 1138). Accordingly, the scope of the preference actions is uncertain. However, in its Motion for Authority to Settle Classes of Preference Claim Controversies Pursuant to Bankruptcy Rule 9019(b) (Docket No. 1249,) the Committee does mention that preference counsel has identified 440 potential preference actions totaling $48 million in transfers. The Stipulation was approved by order of the Bankruptcy Court on September 13, 2016 (the “Stipulation Order”) (Docket No. 1204).
Debtor Fresh & Easy filed for bankruptcy on October 30, 2015, so the Committee is filing this tranche of preferences well before the statute of limitations. Accordingly, the total number of preference actions could be a moving target. As of publication, there have been approximately 200 actions filed.
Fox Rothschild LLP serves as counsel to the Committee and ASK LLP is serving as Special Counsel to the Committee for this preference drill. The substance of the Complaints reviewed thus far is standard ASK material. The Committee does assert fraudulent conveyance claims under Section 548, relying solely on the recitation of the statutory language and deeming the transfers as “Potentially Fraudulent Transfers.”
Epiq Systems is the claims agent for Fresh & Easy, LLC. General case information can be found at: http://dm.epiq11.com/#/case/FRE/info
A list of adversary actions filed as of posting can be viewed here
R. Grant Dick IV