Earlier this week, George L. Miller, the chapter 7 trustee (the "Trustee") in the Moll Industries bankruptcy, began filng complaints seeking to avoid and recover what the Trustee alleges are avoidable transfers, or preference payments, from various third parties. For those unfamiliar with Moll Industries, the company filed a chapter 11 petition for bankruptcy in the Delaware Bankruptcy Court on April 27, 2010. On August 4, 2011, the Bankruptcy Court entered an order coverting Moll's chapter 11 proceeding into a chapter 7 liquidation. George Miller was appointed the chapter 7 trustee soon after.
When Moll originally filed for bankruptcy protection, one of the first pleadings it filed with the Bankruptcy Court was the Declaration in Support of First Day Motions and Applications (the "Declaration"). According to the Declaration, Moll described itself as a "significant provider of global injection molding and full-service contract manufacturing solutions for the medical, appliance, industrial, consumer and automotive markets." Decl. at *3.
Moll was created following the merger of two plastic injection molders in 1998. After the merger, however, the company's European operations were lower than expected, which led Moll to shut down facilities in France and the United Kingdom. Certain creditors of Moll filed an involuntary bankruptcy petition against the company in 2002. The company emerged from its first bankruptcy in 2003. Decl. at *3-4.