Clawback Proceedings Initiated in Bayou Steel BD Holdings, LLC et al Bankruptcy
March 4, 2021, District of Delaware – Trustee George L. Miller for the bankruptcy estates of Bayou Steel BD Holdings, L.L.C., et al., (the “Debtors”) recently initiated adversary proceedings against 24 defendants to avoid and recover certain transfers that took place during the ninety (90) day period before the commencement of the bankruptcy of the Debtors.
The largest claims in the group was filed against – Canadian National Railway Company, Delta Fabrication, and Machine, Inc., and Bobby Lashley Corporation for a return of $1,622,794, $929,790, and $787,500 respectively.
Bayou Steel, a steel mill, through its subsidiaries, manufactures carbon steel products such as beams, angles, channels, and round bars. Its facilities are in Tennessee and Louisiana. It also has distribution depots in Oklahoma, Illinois, and Pennsylvania. The Debtors filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware under Chapter 11 of the Bankruptcy Code on October 1, 2019.
Honorable Judge Karen B. Owens is overseeing the Debtors’ bankruptcy cases. The plaintiffs are represented by Peter J Keane from Pachulski Stang Young & Jones LLP. The case is In re Bayou Steel BD Holdings, L.L.C., et al under case number: 19-12153.