In many Chapter 11 cases, a liquidating trust is formed through a confirmed plan to administer assets set aside for the benefit of creditors. Oftentimes, the only assets in the trust will be litigation claims, such as preference actions transferred to it by the debtor, that must be pursued to create a distribution pool. The outcome of such litigation typically results in a cash recovery, but sometimes there is other consideration that is obtained. In a recent decision, the U.S. District Court for the District of Delaware upheld a bankruptcy court's ruling that a liquidating trust had the authority to pursue not only estate causes of action, but also third-party claims held by preference defendants and turned over to the trust as part of preference claim settlement consideration. See In re Cred, Case No. 1:23-cv-00211-MN (D. Del. Mar. 29, 2024).