Borders Trustee Files 92nd Complaint Seeking To Recover $23 Million

by Tara Arick on January 10, 2013 · 0 comments

in Bankruptcy

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

The liquidating trustee in the Chapter 11 bankruptcy proceeding of BGI Inc., formerly known as Borders Group Inc., on Jan. 4 filed the latest in a total of 92 adversary complaints against various creditors in the U.S. Bankruptcy Court for the Southern District of New York, seeking to recover $ 23 million in what the trustee says are illegal preferential transfers. The most recent adversary case seeks $ 231,755.37 in transfers to CTI Group Inc.  (Curtis Smith v. CTI Group Inc. [In Re: BGI Inc. f/k/a Borders Group Inc.], No. 11-10614, Chapter 11, S.D. N.Y. Bkcy.).
Borders Group Inc. filed for Chapter 11 bankruptcy on Feb. 16, 2011. (11 U.S. Code Section 547)

Curtis Smith, the liquidating trustee, argues that 90 days before filing its petition, BGI transferred money to numerous creditors, including A&E Home Video Corp., the Corporation for Public Broadcasting, Dell Marketing LP, Experian Marketing Solutions Inc., Kelly Services Inc., Playmobile USA Inc., Totes Isotoner Corporation Universal Music & Video Distribution Inc. and a host of book publishing companies.

The liquidating trustee contends that pursuant to 11 U.S. Code Section 547, the transfers are preferential and the funds should be turned over to the bankruptcy estate.

The largest individual amount the trustee claims should be returned to the bankruptcy estate is $ 1,873,891.80, which the trustee argues that Peters Imports Inc. owes.

Recovery Sought

The trustee argues that the Corporation for Public Broadcasting owes $ 196,560.26; Experian owes $ 1,680,219.63; Kelly Services owes $ 874,859.49; A&E owes $ 336,352.45; and Dell owes$ 69,533.25.

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