Tampa    Fort Myers    Pensacola    Destin   

Specializing in insolvency and complex commercial matters since 1974

Stichter, Riedel Successful In Contested Preference Litigation - June 1, 2005

In the Chapter 11 case of Battery Park, Inc., f/k/a Moltech Power Systems, Inc., the firm brought a number of actions to recover voidable transfers both through demand letters, negotiation, and litigation. In several actions, creditors had argued that specialty goods manufactured exclusively for the Debtor, but not delivered to the Debtor, constituted new value under §547(c)(4). Agreeing with the Debtor, the Court entered judgment on June 1, 2005 in favor of the Debtor for $280,631.00. In re Moltech Power Systems, Inc., 326 B.R. 179 (Bankr.N.D.Fla.2005). In another case, the Bankruptcy Court granted Debtor’s motion for summary judgment and entered a judgment of $82,474.00 against a creditor that had unsuccessfully argued the defense of ordinary course of business under §547(c)(2). In re Moltech Power Systems, Inc., 326 B.R. 176 (Bankr.N.D.Fla.2005). The creditor appealed the Bankruptcy Court’s order. Prior to the briefing period, the creditor agreed to immediately pay 90% of the judgment amount in settlement of the dispute. The firm filed Chapter 11 petitions for Moltech Power Systems, Inc. n/k/a Battery Park Industries, Inc. and its parent company, Moltech Power Company n/k/a Sion Power Corporation. Battery Park has been a leading designer, researcher, and manufacturer of battery cells.