Clawback Suits Filed by 38 Studios Trustee
Monday, June 09, 2014
38 Studios Chapter 7 trustee Jeoffrey Burtch has filed 17 lawsuits to "clawback" money for the benefit of creditors in the case.
According to Matt Chiappardi for Law360, the lawsuits are aimed at recovering what are known as alleged preferential payments made during the 90-day period before 38 Studios filed for bankruptcy in April 2012.
“The plaintiff is seeking to avoid all the transfers made by the debtor to the defendants during the preference period,” the lawsuits from Burtch state. “The debtors were insolvent at all times during the 90 days prior to the petition date.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTLaw360 reports that 38 Studios' estate appears to be seeking to claw back a total of $630,000, with firms including PricewaterhouseCoopers LLC, Dell Marketing LP and Oracle America Inc. identified, according to court records.
Burtch did not respond to request for comment.
Avoidance Actions Detailed
The avoidance actions seek to recover $81,000 from electronic sales tracking firm NPD Intelect LLC, $62,000 from Oracle America and $58,000 from Dell Marketing.
Also reported by Law360 is that Burtch settled several other preference actions with companies such as Coffee Express Ltd., W.B. Mason Co. Inc. and business advisory firm Sansiveri Kimball & Co. LLP, totalling $25,000 for the estate. U.S. Bankruptcy Judge Mary F. Walrath approved the settlements after no parties objected, according to court records.
When 38 Studios filed for Chapter 7 bankruptcy in 2012, it listed $21 million in assets against $150 million in debts.
Related Slideshow: 38 Studios Legal Fees
New state records show that state legal fees associated with the 38 Studios bankruptcy are nearing $1 million. Below is a breakdown of how much each firm has made - and stands to make in the future. Figures are taken from documents provided by the Rhode Island Commerce Corporation.
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