On May 2, 2018, Beaulieu confirmed a chapter 11 plan.  The plan creates a liquidating trust that will receive all remaining assets and then make distributions to creditors.  Importantly, the court preserved for the benefit of the trust any claims that Beaulieu had to recover money or property.  Beaulieu originally submitted a lengthy list of possibly preferential transfers to creditors and third parties prior to their original bankruptcy filing.

Preferential transfers can be “avoided” (reversed) and the money reclaimed.  It is often very frustrating for creditors, many of which already lost tens of thousands in bankrupt debt, to receive letters from the bankruptcy representatives demanding that money be returned.  There can be defenses available to otherwise valid preference claims.

It is our understanding that the liquidating trustee, PMCM 2, LLC, is now sending out demand letters on preferential transfers.  If you or your company has received a demand letter to return a preference or other transfer, please give us a call – 706.226.5425 – to discuss your options.