Trust for Meridian Automotive Systems Files Nearly 300 Avoidance Actions
Just days ago, the MAS Litigation Trust, spawned from the bankruptcy of Meridian Automotive Systems, Inc., filed nearly 300 actions to recover avoidable transfers. The causes of action seek avoidance of preferential transfers under Section 547 of the Bankruptcy Code as well as avoidance of fraudulent transfers under Section 548. In addition, the complaints seek denial of claims under Section 502(d) and recovery of all avoided transfers under Section 550.
In what is sure to feel like double jeopardy, many of the defendants now being sued by Meridian also suffered Meridian's purchase of Cambridge Industries Holdings, Inc. out of its own bankruptcy, Case No. 00-1919 (Bankr. D. Delaware), only to be sued by the Cambridge liquidating trustee for preferences and fraudulent conveyances.
