Borders Liquidation Trustee Seeks Recovery Of More Than $9.79M From Vendors

by Tara Arick on February 14, 2013 · 0 comments

in Bankruptcy

- From LexisNexis® Mealey’s™ Daily Legal News.

The liquidating trustee in the Chapter 11 bankruptcy of BGI Inc., formerly known as Borders Group Inc., on Feb. 8 filed 23 adversary complaints against its former vendors, seeking to recover more than $ 9.79 million for the bankruptcy estate.

The largest single complaint is against DPI Specialty Foods Inc. for $ 2.51 million (Curtis R. Smith v. DPI Specialty Foods Inc. [In Re: BGI Inc. f/k/a Borders Group Inc., No. 11-10614, Chapter 11, S.D. N.Y. Bkcy.).

Borders filed for Chapter 11 bankruptcy in 2011.

Recovery Sought

The liquidating trustee contends that the bankruptcy estate is entitled to recover $ 9,791,606.33 from 23 parties such as Microsoft, Coca-Cola Co., Reader’s Digest and various publishing companies.

All 23 adversary complaints follow a boilerplate template in which the liquidating trustee contends that the various amounts sought in recovery should be awarded to the bankruptcy estate because the matters constitute core proceedings under 28 U.S. Code Section 157(b)(2).

Transfers

The liquidating trustee argues in all of the complaints that the money in question should be recovered because Borders paid each vendor within 90 days of filing its bankruptcy petition, which means that the amounts qualify as preferential transfers which should be returned.

Some of the larger companies from which the liquidating trustee seeks recovery are Capitol Records LLC for $ 1,325,299.39, Coca-Cola for $ 437,849.45 and Microsoft for $ 78,605.06.

Add a Comment






Asterisks (*) indicate required fields.

Use of and participation in this website are subject to Terms & Conditions