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Experience

Successful Defense of Creditor in Fraudulent Conveyance/Turnover Action

Northeast-Based Dairy Cooperative of 900 Dairy Producers

In the case of Suprema Specialties, Inc., we successfully represented client in an $88,000,000 fraudulent conveyance/turnover action brought by the Chapter 7 Trustee in the United States Bankruptcy Court for the Southern District of New York. The client is a 31-member cooperative based in the Northeast, that represents nearly 900 dairymen with a combined production of nearly 1.0 billion pounds of milk annually. The former officers and directors of Suprema Specialties, Inc. were indicted on service charges relating to financial improprieties, including fraud. The Chapter 7 Trustee sued many of the company's creditors, seeking a return of monies paid to the creditors for the four-year period prior to the bankruptcy filing asserting that such payments were fraudulent conveyances under New York state law. Following the hearing on a Motion to Dismiss filed on behalf of client, the Chapter 7 Trustee agreed to dismiss the case with prejudice.

 

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