The Chapter 7 trustee overseeing the bankruptcy estates of Start Man Furniture, LLC (formerly known as Art Van Furniture, LLC) filed a motion on March 10, 2026, in the United States Bankruptcy Court for the District of Delaware seeking approval to sell the debtor's rights in the Visa/Mastercard Class Action Interchange Litigation to Optium Fund 6 for $850,000, free and clear of all liens, claims, interests, and encumbrances.
Company Background
Start Man Furniture, LLC (formerly Art Van Furniture, LLC) operated along with a group of affiliated entities at the time of its bankruptcy filing. The company commenced Chapter 11 cases on March 8, 2020, and the cases were converted to Chapter 7 on April 7, 2020. The Chapter 7 trustee was subsequently appointed to administer the estates of the 13 jointly administered debtor entities.
The Visa/Mastercard Interchange Fee Litigation
The asset at the center of this proposed sale is the debtor's right to recover proceeds from an antitrust class action: In re Payment Card Interchange Fee and Merchant-Discount Antitrust Litigation (Case No. 1:05-md-01720-JG-JO, E.D.N.Y.), which commenced on October 20, 2005.
The litigation was initiated by numerous merchants, retailers, and trade associations against Visa, MasterCard, and other named defendants. The plaintiffs alleged that, beginning January 1, 2004, the defendants conspired to unlawfully fix interchange fees — the fees that a merchant's bank pays a customer's bank when merchants accept cards using card networks such as Visa and MasterCard — as well as other fees charged to merchants for transactions processed over those networks.
Settlement discussions began in December 2011, and the parties executed a Settlement Agreement in October 2012. The Eastern District Court preliminarily approved that agreement in November 2012 and granted final approval in December 2013. On June 30, 2016, the United States Court of Appeals for the Second Circuit vacated both the class certification and the settlement approval.
The parties filed a Superseding and Amended Definitive Class Settlement Agreement on September 18, 2018, proposing a settlement in the range of $5.56 billion to $6.26 billion. The Eastern District Court granted final approval of this revised settlement on December 13, 2019. In March 2023, the Second Circuit affirmed the lower court's approval of the settlement for the damages class. The claims process opened for eligible merchants in December 2023, and the trustee filed a claim with the claims administrator on or about March 26, 2024.
Previous Sale Attempt
The trustee previously sought to sell this asset through a competitive auction process. On October 7, 2020, the trustee filed a motion to sell the estates' rights in the interchange litigation pursuant to bid procedures, which the court approved on October 27, 2020. The trustee solicited bids from interested purchasers; however, the interest and offers received were not high enough and, in the trustee's business judgment, the bidding process was adjourned indefinitely.
The trustee submits that a private sale is now appropriate for three reasons: the Class Action Interchange Litigation has progressed to a point of greater certainty and reduced risk; there is likely to be less interest from buyers seeking upside return; and another auction process is unlikely to yield a significant appreciable benefit through a substantially increased sale price given the costs of running a competitive bid and sale process. The sale remains subject to higher and better offers.
Terms of the Proposed Sale
The asset being sold encompasses all rights, title, and ownership interest of any kind to which the debtor's estate may be entitled from the Class Action Interchange Litigation, including the right to monetary benefits or benefits that may be monetized from settlements, judgments, or any other form of resolution. The sale covers only the rights belonging to Art Van Furniture, LLC and excludes the rights of the other affiliated debtor entities.
The purchaser, Optium Fund 6, executed the Asset Purchase Agreement on March 2, 2026. Key financial terms include:
- Purchase Price: $850,000
- Deposit: 10% of the purchase price, due within one business day of entering into the agreement, to be held in escrow and applied at closing
- Payment of Balance: Within three business days after the later of full execution of the agreement and the Approval Order becoming final and non-appealable
- Closing: Within 15 days of full execution and entry of the sale order, provided the order has not been stayed
The agreement includes no break-up fee, expense reimbursement, or similar bid protections in favor of the purchaser. The sale is governed by the laws of the State of Delaware, with the Bankruptcy Court retaining jurisdiction over any disputes arising under the agreement. The trustee is also seeking a waiver of the 14-day stay under Bankruptcy Rule 6004(h).
Bidding Procedures for Competing Offers
The trustee has reserved the right to accept higher and better offers. The motion establishes the following overbid procedures:
- Any competing bidder must submit a written overbid by email to the trustee and his counsel on or before the Response Deadline set forth in the separately filed notice
- The first overbid must be at least $100,000 above the purchase price, for a minimum total of $950,000
- Any written overbid must be accompanied by a cashier's check in the full amount of the overbid
- Subsequent overbids at any auction must be in increments of at least $100,000
- If qualified competing bids are received, the trustee will, in his sole discretion, either schedule an auction prior to the hearing date or solicit sealed best-and-final bids from all qualified bidders
Legal Basis for the Sale
The trustee seeks approval under Sections 105 and 363 of the Bankruptcy Code. Section 363(b)(1) authorizes a trustee to sell property of the estate outside the ordinary course of business after notice and a hearing. Courts in this district have held that such sales should be approved where the trustee can demonstrate a sound business justification for the proposed transaction. The trustee contends that a sale of the asset would be the most optimal manner to maximize value for the debtor's estates.
The sale is sought free and clear of all liens, claims, interests, and encumbrances pursuant to Section 363(f), with any such interests to attach to the proceeds of the sale with the same priority and validity as existed prior to the sale. The trustee further asserts that Optium Fund 6 is entitled to good faith purchaser protections under Section 363(m), as the transaction was negotiated at arm's length with the assistance of counsel and the purchaser is an independent third party.
Key Dates and Deadlines
- March 2, 2026: Asset Purchase Agreement executed
- March 10, 2026: Motion filed
- March 24, 2026 at 4:00 p.m. (ET): Objection deadline
- April 6, 2026 at 10:00 a.m. (ET): Hearing date
Professional Representation and Court Information
The motion was filed by Pachulski Stang Ziehl & Jones LLP, counsel to the Chapter 7 trustee, in the United States Bankruptcy Court for the District of Delaware, at Courtroom No. 7, 824 Market Street, Wilmington, Delaware 19801.
- Case Name: In re Start Man Furniture, LLC, et al. (f/k/a Art Van Furniture, LLC)
- Case Number: 20-10553 (CTG)
- Docket Number: 1744
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