Earlier this month, Pirinate Consulting Group LLC, in its capacity as Litigation Trustee (the “Trustee”) of the NewPage Creditor Litigation Trust, began filing complaints in the Delaware Bankruptcy Court seeking the avoidance and recovery of what the Trustee alleges are preferential transfers. All total, the Trustee filed over 780 preference complaints. In 2011, I wrote a blog post on the commencement of the NewPage bankruptcy. As a follow-up to my prior post, this post will look at events that have transpired since NewPage first filed for bankruptcy, as well how the Trustee would like to proceed now that it has commenced the preference complaints.
NewPage Corporation (“NewPage”) filed chapter 11 petitions for bankruptcy on September 7, 2011. Prior to bankruptcy, NewPage produced coated paper used in magazines, brochures, catalogs and textbooks. The company operated mills located in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Canada. The company filed for bankruptcy, citing a drop in demand for coated paper. NewPage’s paper products were tied to demand for advertising and print media products. With the onset of the recession in 2008, the advertising and print media markets experienced substantial drops in demand, which carried over to paper suppliers such as NewPage.
The Bankruptcy Proceeding