Publish Date: 
Thursday, March 16, 2017

Main Case: In re: Quicksilver Resources, Inc.; Bankr. Case No. 15-10585 (CLSS)
Plaintiff: Eugene I. Davis, as Liquidation Trustee of the KWK Liquidation Trust

Starting March 15, 2017, Eugene I. Davis, as Liquidation Trustee (the "Trustee") of the KWK Liquidation Trust (the "Liquidation Trust") filed 98 complaints (so far) pursuant to Section 547 of title 11 of the United States Code (the “Bankruptcy Code”.) Quicksilver Resources, Inc. and certain of its affiliates (the "Debtors") filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code on March 17, 2015, meaning that this bulk filing occurred on the eve of the statutory two-year deadline.

On August 16, 2016, the Court entered an order (the “Confirmation Order”) confirming the First Amended Joint Chapter 11 Plan of Liquidation for Quicksilver Resources Inc. and its Affiliated Debtors (the “Plan”). The Effective Date was August 31, 2016. The Plan called for the establishment of a Liquidation Trust on the Effective Date for the purposes of liquidating and administering the Liquidation Trust Assets and making distributions on account thereof. The Liquidation Trust Assets included causes of action under Chapter 5 of the Bankruptcy Code, including the avoidance actions under Section 547.

Gellert Scali Busenkell & Brown, LLC and ASK LLP are serving as Counsel to the Trustee 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,” as well as a count for the return of post-petition transfers under Section 549.

Garden City Group, LLC is the claims agent in the Quicksilver Resources bankruptcy cases. General case information can be found at: http://cases.gcginc.com/kwk/index.php

A list of adversary actions filed by the Trustee in the Quicksilver Resources bankruptcy case in Delaware is available here.

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