Where a business is acting as a debtor-in-possession (debtor) in a Chapter 11 bankruptcy case, to confirm a plan of reorganization, the debtor must provide a method for creditors to capture any value from the debtor’s pre-bankruptcy transfers that may be avoidable under the Bankruptcy Code.

Prior to its bankruptcy filing, Val-Mid operated two gas station/convenience stores in Arizona. On June 14, 2013, Judge Hollowell, with the United States Bankruptcy Court for the District of Arizona, denied Val-Mid’s Chapter 11 plan of reorganization and converted the case to a Chapter 7 to be liquidated.  In re Val-Mid Assocs., L.L.C., 2013…

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