Section 547 Preferences (Judge Gargotta)
Crescent Resources Litigation Trust v. Nexsen Pruet, LLC (Jan. 23, 2012)
Issue: Issue: Whether the Litigation Trust’s complaint alleging preferential transfers under § 547 and fraudulent transfers under § 548 sufficient to withstand a Rule 12(b)(6) motion to dismiss.
Holding: Trust’s § 547 preferential transfer claim was dismissed without prejudice because it failed to sufficiently plead the existence of an antecedent debt. Trust’s § 548 fraudulent transfer claim was dismissed without prejudice because the Trust did not plead specific facts to allow the Court to draw a reasonable inference of insolvency or of reasonably equivalent value.