More than 40 Adversary Proceedings Initiated in Achaogen, Inc. Bankruptcy Case
April 1, 2021, District of Delaware – Trustee Edward E. Neiger of the Achaogen Plan Trust, formed in connection with the bankruptcy case of Achaogen, Inc, initiated adversary proceedings against approximately forty-two (42) defendants last week. The Trustee seeks to recover the “preferential transfers” of property that allegedly occurred during the ninety (90) day period before the commencement of the bankruptcy proceedings of the debtor under sections 547 and 550 of the Bankruptcy Code. Besides, the Trustee also seeks to “disallow any claim” that the creditors filed or asserted against the debtor under sections 502(d) and (j) and avoid the transfers made under Section 548 of the Bankruptcy Code as “fraudulent conveyances.”
By way of background, Achaogen, Inc. was a biopharmaceutical company, that focused on the development and commercialization of innovative antibiotic treatments against certain drug-resistant infections. The complaint asserts that as a biopharmaceutical company, the debtor regularly purchased goods and services from various entities including, vendors, creditors, suppliers, and distributors. The debtor’s financial difficulties that led to the decision to file for Chapter 11 bankruptcy protection could be attributable to a combination of factors, all of which apparently placed significant stress on the debtor’s liquidity position in the months leading up to the petition date.
Some of the largest creditors that the Trustee sued in the group include – Hill & Hill Quality Associates, LLC, SADA Systems, Inc., VMLY&R, Charles River Laboratories International, Inc., Cambridge Healthcare Research Limited for return of about $70k as “preferential transfers and fraudulent conveyances.” Honorable Judge Brendan Linehan Shannon is overseeing the debtor’s bankruptcy case in the United States Bankruptcy Court for the District of Delaware under case number: 19-10844.